Question 1

What is a common misconception about Professional Liability (E&O) for Law Firms?

Accepted Answer

Solo practitioners think they can self-insure. State bars increasingly publish individual lawyers' insurance status; clients see it.

Question 2

What happens if law firms don't have Professional Liability (E&O)?

Accepted Answer

A missed statute-of-limitations on a personal injury case forfeits a $400K recovery. Client sues firm for malpractice. LPL defends and pays.

Question 3

What is a common misconception about Cyber Liability for Law Firms?

Accepted Answer

Solo and small firms think they're 'too small to target.' They're actually preferred targets — less security, valuable data, motivated to pay ransoms quickly.

Question 4

What happens if law firms don't have Cyber Liability?

Accepted Answer

BEC scam impersonates a senior partner, instructing wire transfer of $180K from trust account. Without funds-transfer fraud coverage, the firm pays from operating funds. With it, cyber pays.

Question 5

What is a common misconception about General Liability for Law Firms?

Accepted Answer

Firms with frequent client visits underestimate slip/fall exposure.

Question 6

What happens if law firms don't have General Liability?

Accepted Answer

Client trips on rug — $18K medical. GL pays.

Question 7

What is a common misconception about Employment Practices Liability (EPLI) for Law Firms?

Accepted Answer

Law firms have above-average EEOC charge rates for harassment and discrimination, partly due to long associate tenures.

Question 8

What happens if law firms don't have Employment Practices Liability (EPLI)?

Accepted Answer

Associate alleges harassment by partner. Defense + settlement: $200K. EPLI pays (though some carriers exclude partners).

Question 9

What is a common misconception about Directors & Officers (D&O) for Law Firms?

Accepted Answer

Partnerships often face partner-buyout disputes that resemble D&O claims at corporations.

Question 10

What happens if law firms don't have Directors & Officers (D&O)?

Accepted Answer

Departing partner sues over buyout valuation — D&O defends with $80K in legal costs.

Law Firms Insurance Coverage Guide | RISKX