Business Insurance For Law Firms

Business Owner’s Policy (BOP): this is the broadest business insurance coverage available to law firms. It combines three major insurance coverages into one business policy:

• General liability insurance protects against accidental bodily injury or property damage.
• Commercial property insurance is similar to your personal homeowner’s policy, this coverage provides protection for damage to your building – owned or leased – and other business assets.
• Business income insurance, otherwise known as business interruption insurance, can protect your income if you are forced to stop operating for some time.

It is also highly customizable with specific law-firm-related endorsements available to you. A BOP policy generally satisfies requirements in leased spaces by a landlord or financed buildings by a bank.

Workers’ Compensation: this coverage is required in most states* and covers your employees for any work-related injuries or illness and related costs such as:

• Payment for medical bills
• Replacement for lost wages due to recovery
• Ongoing care, like physical therapy

Workers’ comp can also protect your firm from costs. It includes liability insurance coverage against lawsuits from injured employees or their families.

If a solo firm or partnership has at least one employee (W2 or 1099), a firm should have this coverage in place.

*not available from a private insurer in WA, WY, OH, ND, USVI

General Liability Insurance: this coverage is different than your professional liability insurance, otherwise known as malpractice insurance. General liability insurance covers the common risks from running a business like a customer injury, customer property damage, and even advertising injury (claims of stolen ideas, invasion of privacy, libel, slander, and copyright infringement related to advertising). Many lease agreements require this minimum “slip and fall” coverage.

Commercial Auto Insurance: similar to personal auto insurance, this helps protect you and your employees on the road if the firm (entity) owns any business vehicles. This coverage may be required in your state. If your firm allows employees to use their vehicles or you use your personal auto for routine business reasons, a “hired & non-owned” endorsement should be added to your BOP policy

Other commercial lines:  Some other common business insurance coverage available to you are:

• Cyber Insurance
• Employment Practices Liability Insurance (EPLI)
• Crime Insurance
• Errors & Omissions (Professional liability)

Let us tailor coverage to your firm based on your specific needs to best provide you with one solution for protecting your firm.

Some types of business insurance are required by law. Most states require workers' compensation if a law firm has even 1 additional employee beyond the solo attorney or partners of a law firm. Commercial auto insurance is required if a law firm owns any vehicles.

Most landlords require at least General Liability insurance in their leases. Banks will as well for any financed buildings and equipment. Some clients such as government agencies or corporate clients may also have specific limits or coverage requirements to engage with them as their counsel.

An attorney’s most important insurance is their professional liability insurance, however, it only protects a lawyer from errors and omissions of their professional services.   Check state requirements and all contract language as it pertains to your firm. 

Law Firms are businesses, and in addition to securing lawyers’ malpractice insurance, they also need to secure the right business insurance, also called commercial insurance. These other coverages provide important protection for the business part of your firm. Accident at your firm? You could face a lawsuit. Does an employee get injured at work? We live in a litigious society and you need protection from workers’ claims.

The specific makeup of your firm determines your risks, which in turn determines which policies you need. Do you own your building? Do you lease it? Do you, or any employees, drive as part of their firm work? What about cyber protection? Is your firm protected if forced to shut down for some time due to a cyber breach? Working with an expert in law firm insurance can help you easily determine the best way to protect your firm.

At ALPS we know that attorneys want to feel confident their insurance partner understands the unique challenges faced by law firms. To do that, you need a complete insurance solution; a “one-stop shop” that makes it easy to protect your entire firm and not just your professional services.

The problem is that it is time-consuming and difficult to know what coverage is best for your firm. It can be even more challenging to know who to trust when making this decision. The business insurance world can be frustrating to navigate.

We believe it’s wrong that attorneys don’t have one place, one trusted source, you can turn to for all their business insurance needs. That’s why we have partnered with these carriers to deliver a complete line-up of law-firm-specific solutions. ALPS only insures lawyers and as the carrier endorsed by more state bars than any other, we understand the needs of solo or small law firms better than anyone in the industry. It’s easy for you to get started. Just schedule a meeting and you can relax knowing that the entire business insurance process is tailored to your firm.

ALPS will always be a direct writer of lawyers’ malpractice insurance. We firmly believe that our attorneys are best served by working directly with the people charged with protecting your ability to practice law. We’ve been specializing in only legal malpractice insurance for over 30 years and are using that knowledge and expertise to bring new solutions to law firms across the country.

It's that experience that allows us to craft a complete business insurance solution for lawyers. Our reputation in the industry is above reproach and we can bring you partnerships and law-firm-specific solutions through ALPS Insurance Agency. ALPS does not write any business insurance other than legal malpractice insurance, however, you can expect the same level of service you’ve come from the easiest malpractice insurance in the industry as we partner with companies who are specialists too.