Business Insurance Requirements for Lawyers in North Carolina

From Charlotte’s international finance dominance to the innovation from the Research Triangle, opportunity abounds for lawyers in North Carolina. Just as every case has different needs and nuance, individual business factors should be considered when choosing appropriate insurance for your practice.

If you lease commercial space, your rental agreement will likely require you to have general liability insurance and/or property insurance. North Carolina state law requires small businesses that employ three or more workers to carry workers’ compensation insurance. Lawyers in North Carolina are not required to obtain professional liability insurance. Also called errors and omissions insurance or lawyer malpractice insurance, this policy can help with the cost of lawsuits alleging business error. North Carolina lawyers should also consider carrying a cyber liability insurance policy, as they are often entrusted with sensitive client information. This policy can help with recovery costs following data breaches or other cyberattacks.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for lawyers in North Carolina, and start an application to get your free quotes today.

Find the right insurance policy for your law firm

The most common policies for North Carolina lawyers vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.

 

Business type General liability / BOP Professional liability Workers' comp Cyber liability
1099 or independent contractor X X   X
Business owner with employees X X X X
Solo business owner X X   X

 

General liability insurance: General liability insurance is the foundation of a lawyer’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or lawyer malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy.

Business owner's policy (BOP): Lawyers sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

Cyber liability insurance: Cyber liability insurance can helps lawyers survive data breaches and cyberattacks by helping pay for recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

North Carolina workers' compensation: North Carolina state law requires workers’ compensation coverage for all small businesses that employ three or more workers. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors and solo business owners can elect to cover themselves under a workers’ compensation policy, but it’s not required. While lawyers are less likely than workers in other industries to sustain on-the-job injuries, accidents can still happen. The specialization of your practice can affect your risk. Lawyers who work with clients in emotionally fraught areas, such as the fields of family and criminal law, may be exposed to a higher risk of retaliatory violence. More common workplace injuries, such as falls, slips, and trips, can impact lawyers across all specializations.

Business insurance costs for lawyers in North Carolina

Business insurance is generally less expensive in the Tar Heel State than it is nationally, according to an analysis of Insureon applications. While the cost of general liability coverage trends higher in North Carolina, errors and omissions insurance is available at a significant discount compared to other states. This is great news for attorneys. While errors and omissions coverage is not required by North Carolina state law, attorneys face a higher level of risk than professionals in other fields, making it a wise investment. In all, lawyers in North Carolina can expect to spend around $250 per month to secure their practice.

Median Insurance Costs for North Carolina Lawyers

Save time and money with Insureon

Insureon’s industry-leading technology helps lawyers in North Carolina save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in North Carolina and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  • Workforce details, such as the number and types of employees.
  • Current and projected revenue.
  • Business partnerships.
  • Insurance history and prior claims.
  • Commercial lease insurance requirements.

Apply for free lawyer insurance quotes today.