How much does insurance cost for lawyers and attorneys?

Lawyers and law firms pay an average of $29 per month, or $350 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party lawsuits related to bodily injuries and property damage. For example, it would cover your legal defense costs if a client trips on a loose rug in your office and suffers a concussion, or if your assistant spills coffee on a client's laptop and breaks it.

This policy also helps pay for legal fees if someone sues your business over an advertising injury, such as copyright infringement or defamation. For example, a lawyer could get sued for invasion of privacy for posting details about a successful case on LinkedIn without their client's permission.

Keep in mind that you’ll still need lawyers' professional liability insurance for legal malpractice claims. Unlike general liability insurance, this is a claims-made policy that must be kept active to provide malpractice coverage.

Below is the average general liability policy for lawyers who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The per-occurrence limit is the maximum your insurance company will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

The cost of general liability insurance depends on factors such as the coverage limits and deductible you choose, whether you work from home or an office, your business income, and any additional insured endorsements.

Learn more about how your premium is calculated and how to save money on general liability coverage.

Law firms pay an average of $57 per month, or $683 per year, for a business owner’s policy. Solo attorneys and small firms with low risks are often eligible for this cost-saving insurance package.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each type of coverage separately.

A BOP protects against accidents that injure clients or damage their property, along with personal injuries like slander. It also pays for repairs if your building or business personal property is damaged by a fire, storm, or vandalism. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents.

This is the average BOP for attorneys who buy from Insureon:

Premium: $57 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Policyholders may see higher insurance rates if they choose to add endorsements to their policy. For example, business interruption insurance covers your financial losses if a fire or other covered property claim forces your law firm to close temporarily.

The cost of a business owner's policy is based on several factors, including the value of your building and its contents, where you are located, the number of employees you have, and your policy terms, including any exclusions.

For law firms, the average cost of workers’ compensation insurance is $52 per month, or $620 annually. Professions with a high risk of physical injuries cost more to insure, which is why premiums are relatively low for legal professionals.

This policy covers medical expenses and disability benefits related to employee injuries, such as a paralegal who trips in a dim stairwell in your office. It usually includes employer's liability insurance to protect against lawsuits from injured workers.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, law firms in California and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing risk management practices to avoid work-related injuries and subsequent claims.

Attorneys and law firms pay an average of $163 per month, or $1,954 per year, for commercial auto insurance.

This policy pays for legal fees, medical treatment, and repairs if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, any additional insured endorsements, and the value of your vehicles.

Higher risk drivers, such as those with an accident on their driving record, will cost more to insure. Opting out of coverage you don't need, such as comprehensive auto insurance, will result in a lower premium.

Attorneys and consultants who offer legal services and advice spend an average of $175 per month on cyber insurance, or $2,101 annually. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps your small business recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber insurance policy is especially crucial for law firms that store personal information, such as credit card numbers, phone numbers, and email addresses belonging to your clients.

The cost of cyber insurance and the amount of coverage you need depend on how much personal data your business handles, along with any cybersecurity measures you implement to reduce your risks.

The average cost of a surety bond for solo practitioners and law firms is only $6 per month, or $66 annually. You may need a bond to perform certain kinds of legal work, or in rare cases to comply with state laws.

Lawyers often need a surety bond when they are directly responsible for a client's funds. For instance, an attorney who is serving as the executor of an estate, or who is involved in a real estate transaction, should be both bonded and insured. The bond acts as a financial guarantee that you'll carry out your responsibilities in accordance with laws and standards.

In some cases, you may need a fidelity bond. This bond financially reimburses your clients in the event of employee theft or fraud.

Unlike insurance, when a bond provides reimbursement, you must pay that amount back to the company that issued the bond.

The cost of a surety bond is a small percentage of the bond amount, which makes the size of the bond the biggest factor in determining your premium. A poor credit score can also lead to a higher premium.