You know it’s important to have malpractice insurance, but do you have adequate protection for your firm’s risk profile? The cost to defend a claim combined with inflationary trends means the limits of liability you carried yesterday may not be enough to protect you tomorrow.


You should review your firm’s limits of liability annually. If your firm has carried the same liability limits for the past few years, it’s time to take a thoughtful look at your limits as evidenced in the graphics below. 

Higher limits

Has your firm changed?

Have you focused on different areas of practice, added more attorneys, taken on larger and more high-profile clients since you last reviewed your limits? When considering your limits, consider first how much of your assets you want to protect, and second, how much coverage you need to protect your clients. (excerpted from the ABA Standing Committee on Lawyers’ Professional Liability Insurance’s website)

How much coverage do you need?

Every firm is different. Determining what limits are best for your firm is not an exact science. This simple formula* may be a good starting place.

*From a leading Professional Liability Association dedicated to education in insurance. Not to be relied upon to establish limits required for your risk, and not to be considered advice or consultation related to the appropriate amount of limits you should carry. This data is only to be used as a general benchmark. You must use this and other factors to make your own determination of appropriate limits.

How does increasing your limits affect your premium?

Your premium is determined by many factors. Looking at the limits of liability as it relates to price will not yield a proportionate result. That’s a good thing because generally an increase in your limits of liability does not mean a major increase in your premium.

That’s why we outline your quoted premium based on a number of different limit options.

Remember, the risks of not making an informed decision about your limits of liability are likely higher than the price of your insurance premium. We would be happy to talk through your options today.

We understand that choosing the right partner to protect your firm means knowing that we'll be there when you need us. With ALPS, we are invested in your success. You're not buying a policy. You're buying a promise.