Your client's data and any funds you are responsible for can be desirable to external, or third-party, digital theft and cybercrime.
Designed to stand alone or build on coverage provided by your Business Owner's Policy or commercial policy, crime insurance can protect your firm from any losses due to theft, fraud, or burglary committed by your employees or outside entities.
Attorneys tend to be very careful when hiring employees and new attorneys. We place a lot of trust in other members of the firm and put internal and external oversight risk management controls in place. That should let you feel confident that your firm has every protection in place to prevent theft and fraud.
Unfortunately, no firm is safe when it comes to occupational fraud and abuse. Fraud can happen in any firm, at any time, so it is important to have the right Crime coverage in place.
A Commercial Crime Insurance policy should be carried if:
Your employees have access to any funds, data, or client information
Your firm uses any funds transfers
Your firm maintains any social media, or online, presence
What does Commercial Crime Insurance for Law Firms typically cover?
Policy coverage for:
Partner or Employee Theft from the firm
Theft or Disappearance of Money or Securities
Forgery
Computer Fraud
Funds Transfer or Wire Transfer Fraud
Money Order or Counterfeit Currency Fraud
Credit Card Fraud (for misuse of corporate cards)
Theft by Partners or Employees from Clients
Discover ALPS Law Firm Insurance Options
Check out the most popular insurance products for attorneys
Legal Malpractice Insurance
Our flagship product, ALPS is the nation's leader in insurance for solo and small law firms. Gain peace of mind with simple, smart protection for your firm. 100% online. 100% easy.
Cyber Liability Insurance
Now more than ever, you need coverage that includes your firm's digital footprint. ALPS has been at the forefront of providing cyber liability insurance designed specifically for law firms.
Business Owner's Policy (BOP)
Combining various insurance coverages into one convenient policy, a BOP is a great solution when you want something tailored to you.
Workers' Compensation Insurance
Mandatory in some states, WC protects employees from work-related injuries and illnesses. Instead of having to defend yourself in court, it pays for the costs of a claim.
General Liability Insurance
Unlike professional liability, general liability insurance protects against claims of bodily injury or property damage during normal law firm operations.
Employment Practices Liability
Protect your firm from the litigious nature of today's workplace. People today tend to sue first and sort out the details later. Get covered for more than the risk of a malpractice claim.
Crime Insurance
Protect your firm from any losses due to theft, fraud, and burglary committed by your employees and outside entities. Client data and funds can be attractive to theft and crime.
Surety Bonds for Attorneys
Similar to insurance, a bond is an agreement between three parties to pay a benefit to one of them. Common attorney bonds are Notary, Court, Fidelity, and Title agent/Real Estate closing bonds.
Commercial Auto Insurance
Commercial auto insurance provides liability and physical damage coverage for vehicles used in a law firm's business. Commercial vehicles pose more risk than personal vehicles.
Directors & Officers Liability
Directors & Officers (D & O) Insurance protects lawyers from personal losses if they are sued for serving as a director or officer of an organization.
Employed Lawyers Liability
Offered as a Miscellaneous E & O policy, get coverage for your professional legal services when offered as an in-house attorney.
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Frequently Asked Questions About Commercial Crime Insurance for Law Firms
Commercial crime insurance can help protect a law firm from certain losses caused by theft, fraud, forgery, burglary, or employee dishonesty. Depending on the policy, this may include the firm’s money, property, or other financial assets. Coverage depends on the policy terms, limits, exclusions, and the facts of the loss.
Small firms can still face theft or fraud involving firm money, client money, checks, property, or electronic payments. A small office may also have fewer people reviewing financial activity, which can make a problem harder to spot quickly. The protection available depends on the policy.
It may cover certain losses caused by employee theft or dishonesty. This can be important when employees handle payments, bookkeeping, billing, trust accounts, or financial records. Coverage depends on who qualifies as an employee, what money or property is covered, when the loss is discovered, and how quickly it is reported.
It may cover theft involving the firm’s money. Some policies may also cover client funds, depending on the wording. A law firm should confirm whether protection applies to operating accounts, trust accounts, escrow funds, client funds, or some combination of these.
Commercial crime insurance generally focuses on losses caused by theft, fraud, forgery, employee dishonesty, burglary, and similar crimes. Cyber liability insurance generally focuses on data breaches, cyberattacks, ransomware, privacy incidents, and certain technology-related losses. Some events, such as phishing or fraudulent money transfers, may involve both policies. The policy wording should be reviewed before assuming either policy will cover the loss.
Commercial crime insurance does not cover every financial loss. Depending on the policy, exclusions may apply to accounting mistakes, poor business decisions, contract disputes, losses known before the policy began, acts by certain owners or partners, indirect losses, and some cyber-related events. The actual exclusions depend on the policy wording, endorsements, applicable law, and the facts of the loss.
Choosing the right partner to protect your firm shouldn't have to be difficult. With ALPS, you can get some time back in your day to focus on why you got into this business in the first place - helping people.
