It is important for law firms and offices to have appropriate insurance coverage. The idea of finding coverage and comparing quotes on your own can seem like a daunting task. The team at Cross Insurance is here to help – we can provide you with options for quality insurance products for your law practice at competitive prices.
Below is some general information that you may want to consider when evaluating your insurance needs.
Law firms and offices face a variety of risks – such as the threat of a malpractice claim from an unhappy client, someone suffering a personal injury while on your premises, the possibility of disputes with employees, or the risk of property damage to your office building and business equipment, just to name a few. Having appropriate insurance in place can help mitigate the financial impact associated with covered claims.
While each law firm faces its own unique risks and challenges, the following are some common types of insurance coverage that you may want to consider.
Legal malpractice insurance (sometimes referred to as professional liability insurance) can provide coverage for claims that arise out of negligent errors and omissions committed in the course of legal representation. Potential examples may include errors such as missed deadlines, providing inaccurate advice, or failure to conduct reasonable research or investigation in a case. Given the nature of legal work and the risks that are associated with it, all law firms and offices should seriously consider purchasing malpractice insurance.
General liability insurance helps to provide your firm or office with protection for certain third-party liability claims related to your business operations, such as someone who suffers bodily injury or property damage while on your premises. Some general liability policies also include coverage for certain types of personal and advertising injuries, such as claims for defamation or copyright infringement.
If your law firm has one or more employees, you should consider employment practices liability. This type of policy provides coverage for certain employment-related claims, such as employment discrimination, harassment, failure to hire or promote, and wrongful termination.
Workers’ Compensation may be legally required if your firm has employees. Workers’ comp can help cover medical bills for employees who are injured or become ill because of work related events. It can also help cover a portion of lost wages while they are unable to work due to their injury or illness.
As a law firm or office, you are entrusted with a great deal of sensitive client information. While cyber-attacks are becoming increasingly common, cyber liability insurance can help to provide your company with protection from data recovery costs, reputational damage, and income loss if your clients’ data and records are exposed.
Commercial property insurance is a fundamental coverage that every business should consider. Commercial property insurance can help protect your practice against certain types of physical damage to your building and the contents within. Whether you own the building or lease the space, commercial property insurance is highly recommended. The following are some of the assets commercial property can help insure:
If you operate vehicles in connection with your law firm or office, then commercial auto coverage is important. Cross provides coverage for many types of vehicles used for commercial purposes.
Commercial umbrella insurance can be a wise choice for any business. This product provides an additional layer of coverage to help with claims that exceed the policy limits of certain liability policies, such as commercial general liability and commercial auto liability. Law firms and offices see firsthand the significant amount that lawsuits can cost, so having commercial umbrella insurance as an added layer of protection can be a worthwhile investment.
Insurance premiums for law firms and offices are typically determined by a variety of factors. These factors may include, without limitation: the types of policies and amount of coverage you select; the number of legal practitioners in your firm; the types of law that you practice; the location(s) of the firm or office; and the frequency and severity of your claims history. For example, a small firm located in a state that typically has a history of more modest judgments and awards, and which practices in areas deemed to be lower risk by underwriters, can usually expect to have lower premiums than a large office located a state known for higher judgments and which practices in areas considered higher risk by underwriters.
In order to protect the investment you have made in your law firm or office, you should be sure to satisfy yourself that you have appropriate insurance coverages. Some common coverages for law firms or offices include professional liability, general liability, commercial property, employment practices liability, workers’ compensation, cyber liability, commercial property, commercial auto, and commercial umbrella. You should connect with a local insurance agent to discuss unique features of your law firm or office to see if you should consider additional coverages.
This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.