How much is lawyer and attorney insurance?

General liability insurance for lawyers costs an average of $29 per month, or $350 per year.

This policy covers accidents that injure someone outside your law firm or damage their property. For instance, a client could trip in a dim stairwell at your office and suffer a concussion, or break their laptop in the fall. A general liability policy would pay for medical bills, repairs, or legal defense costs if you're sued.

General liability insurance covers advertising injuries as well as personal injuries. It can pay for accusations that you published a photo of a client on your website without permission, or slandered a competitor on social media.

You might need general liability coverage to sign a commercial lease, secure a contract, or get a business loan. It shows your clients and partners that they're protected against financial losses from the most common risks.

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

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

The cost of general liability insurance depends on numerous factors, including your business operations, the policy limits and deductible you choose, the size and location of your business, the number of employees you have, and any exclusions or endorsements on your policy, such as an additional insured.

Keep in mind that general liability insurance does not cover malpractice claims. For that, you'll need professional liability insurance, also called malpractice insurance for attorneys or errors and omissions insurance (E&O).

Malpractice insurance protects against accusations of professional negligence. It would help pay for legal costs related to incorrect legal advice, a mistake in a document, or an alleged conflict of interest.

Lawyer professional liability insurance costs depend on your area of practice, your claims history, and the amount of coverage you buy. Most insurance carriers sell it as a claims-made policy, which means you must keep your policy active in order to file a claim.

This type of lawyer liability insurance is strongly recommended as part of a comprehensive risk management strategy, even when it's not required. However, TechInsurance does not offer quotes for lawyers' malpractice insurance.

Law firms pay an average of $57 per month, or $683 per year, for a business owner's policy (BOP).

A business owner's policy bundles general liability coverage with commercial property insurance at a lower cost than buying these policies separately. You can often add other types of coverage as well.

A BOP provides insurance for your office in the event of a fire, storm, or theft. It also protects against common liability claims related to bodily injuries and property damage, such as a legal assistant who spills coffee on a client's laptop and damages it.

One popular add-on is business interruption insurance, also called business income coverage. This policy covers lost income, employee wages, and other operating costs if your business closes temporarily due to a fire, storm, or other covered property claim.

This is the average business owner's policy for law firms that buy from TechInsurance:

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

Businesses that are eligible for a BOP usually are small in size (fewer than 100 employees) and low risk.

The cost of a business owner's policy depends on factors such as the value of your business property, the coverage limits you choose, and your location.

Law firms spend an average of $52 per month, or $620 annually, on workers' compensation insurance.

Workers' comp pays for medical expenses and disability benefits in the event of a employee injury. For example, if a paralegal strains their back lifting a heavy box of legal documents, this policy would pay for their medical treatment and partial lost wages while they recover.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require law firms to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors, such as a solo practitioner who works independently, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

The cost of workers' compensation mostly depends on the number of employees you have and the type of work they do. It's often less expensive for businesses in states that have lower healthcare costs.

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

If your company vehicle gets into an accident, this policy will help pay for any damages you caused. It will also cover your legal fees if you're sued.

You can buy coverage for other risks as well. For instance, collision insurance will pay for repairs if your vehicle is damaged in a collision, while comprehensive coverage pays for damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires this insurance coverage for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto policies can vary considerably. Some of the most important factors are your employees' driving records, the policy's limits and deductible, the number of vehicles you own, and the coverage options you choose.

The average cost of cyber insurance for lawyers is $175 per month, or $2,101 annually.

This policy covers expenses related to cyberattacks and data breaches. It can help pay for data breach investigations, provide reimbursement for ransomware payments, and help with costly customer notifications, which may be required by state laws after a breach.

Cyber insurance is crucial for solo attorneys and law firms that store personal information, such as Social Security numbers, email addresses, and other client data. It's sometimes called cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance primarily depends on the type of business you own and the amount of sensitive information handled by your company.

The average cost of a surety bond is $6 per month, or $66 annually, for law firms and legal professionals.

You might need a bond in order to handle funds or property belonging to a client, or to sign a contract. A bond provides a financial guarantee that you will properly manage the assets and comply with regulations.

Fidelity bonds, a type of surety bond, protect your clients by reimbursing them in the event your employee commits theft, fraud, or forgery. This include illegal electronic funds transfer and unapproved credit card purchases.

The cost of a fidelity bond is a certain percentage of the total bond amount. Other factors, such as your credit rating, can also affect the cost of a bond.