Insurance for Larger Law Firms

Larger law firms typically consider legal malpractice insurance first, but they may also need cyber liability, business owner’s policy (BOP) coverage, general liability, employment practices liability, workers’ compensation, commercial crime, commercial auto, directors and officers (D&O) liability, and surety or fidelity bonds. The right mix depends on the firm’s size, practice areas, employees, client data, office footprint, financial controls, and contractual requirements. 

The amount of legal malpractice insurance coverage a larger law firm needs depends on its number of attorneys, practice areas, client types, matter values, revenue, claim history, geographic footprint, and contractual obligations. As firms grow, they may need to evaluate higher limits, deductible options, prior acts coverage, and excess coverage. An ALPS representative can help explain available options based on the firm’s risk profile. 

Since 1988, ALPS has served only lawyers and law firms. That exclusive focus means we understand the risks, responsibilities, and operational challenges that legal practices face as they grow.

ALPS is also trusted by thousands of law firms nationwide, has earned thousands of 5-star Trustpilot reviews, and is endorsed by more state bars than any other carrier in the country. Policyholders also receive free, unlimited CLE, and have access to a comprehensive library of risk management resources designed to help prevent claims and support stronger practices. 

Larger law firms can manage malpractice risk by standardizing intake and file closing procedures, mandating conflict checks, requiring engagement letters on all new matters, instituting independent and redundant calendaring systems, establishing file documentation standards and client communication expectations, and instituting cybersecurity best practices. Risk management becomes more important as more attorneys, staff, clients, and matters are added. ALPS' resources may help firms identify gaps and strengthen internal systems. 

Lateral hires, mergers, and attorney departures can affect a law firm’s malpractice risk because they may introduce prior work exposure, create new client conflicts, lead to attorney coverage concerns on open matters, change past claims history, and/or create gaps in coverage. Firms should address prior acts coverage, tail coverage, conflict procedures, client transfer documentation, and claims reporting obligations when attorneys join or leave a firm.

A growing law firm may need higher malpractice limits or excess coverage if its matters, clients, revenue, attorney count, or contractual requirements increase. Larger firms may also face greater exposure from multiple attorneys handling complex or high-value work. Whether higher limits or excess coverage are appropriate depends on the firm’s risk tolerance, practice mix, client requirements, claims history, and available policy options. 

Higher limits increase the coverage available under your primary legal malpractice policy, while excess insurance adds a separate layer of coverage that generally applies after the primary limit is exhausted. Both can provide more protection, but they are structured differently.