Business Insurance Requirements for Lawyers in Texas

Without resorting to bumper sticker clichés, Texas is defined by scale and opportunity. From the booming technology sector in Austin to a burgeoning bio-science market along the Gulf’s “Third Coast,” it’s no wonder that Texas has the country’s third largest economy, according to the U.S. Department of Commerce.

Lawyers in Texas understand doing business in the Lone Star State doesn’t neatly conform to a one-size-fits-all approach, and that also applies to finding insurance coverage. It’s important to evaluate your individual risk and a few key factors when determining the insurance you choose to protect your business. Will your practice move into a commercial space? Most leasing agreements require proof of general liability insurance and/or commercial property insurance. Texas state law does not require business owners to provide workers’ compensation insurance but coverage may be prudent for your practice. Similarly, professional liability insurance isn’t required by law but it is mandated for membership into many of the state’s lawyer referral services. Cyber liability insurance is emerging as a key policy for lawyers to consider. In the event of a data breach or other cyberattack, a cyber liability policy can help with recovery costs. Law practices are regularly tasked with housing personal information from clients, increasing the risk of an incident.

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 Texas, and start an application to get your free quotes today.

Find the right insurance policy for your law firm

The most common policies for lawyers in Texas 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 an attorney’s business protection. Coverage 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 to cover recovery expenses. You may need this policy if you handle sensitive data such as credit card numbers, passwords, or Social Security numbers.

Texas workers' compensation: Workers’ compensation coverage is optional under Texas state law. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors or solo business owners can cover themselves under a workers’ compensation policy if they would like, but legally they are not required to do so. Your specialization has some impact on exposure risk. While areas of law dealing with highly emotional clients, such as criminal and family law, increase the risk of reactive violence, costly injuries resulting from accidents can befall lawyers in any practice area.

Business insurance costs for lawyers in Texas

The state’s famous aversion to red tape helps to explain lower insurance coverage expenses for many common policies for lawyers in Texas. However, the first thing you may notice is the state’s errors and omissions costs are nearly double the national average. While it may be tempting to skate by without coverage, the absence of professional liability insurance can bar lawyers from entering into professional organizations or expose them to damages that could reach eight figures. Overall, a Texas lawyer can expect to spend less than $1,000 per month to secure their practice.

Median Insurance Costs for Texas Lawyers

Save time and money with Insureon

Insureon’s industry-leading technology helps lawyers in Texas 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 Texas 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.