Attorney Insurance

Build the Case for a Better Business with Attorney Liability Insurance

As an attorney, you live for the details. Reviewing statutes and case law line by line is an everyday occurrence, and you use your expertise to help your clients. You’ve worked hard to earn your reliable reputation, and here at Simply Business, we can help you protect your business for years to come.

Simply Business offers insurance that can help if some things don’t go as planned. You don’t need to be an insurance subject-matter expert, either. We’ll help you find the appropriate coverage for your practice. All you need to do is answer a few questions about your business to get free quotes from the most trusted insurance companies in the country.

We know time is money, so it takes only a few minutes to get customized quotes.

Here are three types of business insurance coverage available to attorneys:

• General liability insurance
• Professional liability insurance
• Workers compensation insurance

Each type of policy covers different scenarios, but all insurance offers the benefit that:

• It can protect your business from certain claims.
• It can cover damages caused by your negligence.
• Proof of insurance can help clients feel good about your work.
• It may be legally required where you’re located.

What Does Insurance Cover for Attorneys?

Here’s something you don't often hear — you don’t need to spend hours learning about business insurance. Your time is better spent working on your clients’s cases and our licensed insurance agents are here to help answer many of the questions you may have about insurance coverage.

To get started, you may be curious about what types of insurance you need to carry and what they cover. Here are the three types of coverage your practice may need.

General Liability Insurance

Are you a generalist or a specialist? If general liability insurance were a law firm, it would accept a little bit of every kind of case and client. This type of insurance covers ‘general’ claims, such as those arising from bodily injury or property damage to a third-party.

The average claim for damage or accidents in small businesses is $30,000, which means that being insured could protect your finances from a big hit. You also may choose to add contents coverage, which could offset the cost of stolen business property.

Let’s run through a hypothetical scenario where attorney liability insurance could come in handy. One day your client is visiting your office, and you have to use an extension cord for your laptop because of a problem with the outlet near your desk. As your client is leaving, they trip over the cord and hit their head on the side of the door. Unfortunately, your client is injured and has to visit the doctor to get stitches.

Without insurance, you may need to pay for the medical expenses out of pocket. However, a general liability policy would help cover the costs. If you found yourself in a scenario like this, you would be grateful to have insurance to minimize financial damage.

So what does general liability insurance for attorneys usually cover? Here’s a recap:

• Third-party property damage (aka clients or vendors)
• Bodily injury
• Medical expenses
• Personal and advertising injury
• And more

General liability insurance does not cover:

• Personal property damage
• Professional services
• Employee injury and workers compensation
• Damage to your work
• Motor vehicles during business use
• Intentional injury or damage
• And more

Professional Liability Insurance

You’ve likely heard of malpractice, or professional liability insurance. Since you’re offering a professional service, a client can sue you for negligence and damages, even if you don’t agree with the claim. In fact, professional liability insurance covers you in case a client claims that you, your employees, or your business were negligent.

What constitutes “malpractice” or “negligence,” though? It could be as simple as missing an important deadline with the court which changed the outcome of the case to your client’s detriment. As a result, your client sues you for legal malpractice.

Even if you have sufficient proof to claim your actions weren’t negligent or it didn’t change the outcome of the case, you will still incur legal fees. Without professional liability insurance, you’d need to pay any settlements and legal fees out of pocket, whether it comes from your professional or personal finances. However, malpractice insurance could offset those costs and potentially save your practice.

Let’s review the scenarios that professional liability insurance usually covers:

• Legal defense costs
• Omissions or alleged omissions
• Negligence or alleged negligence
• Claims and damages
• And more

Having attorney professional liability insurance does not usually protect you from:

• Property damage
• Intentional acts and omissions
• Bodily injury
• Medical expenses
• And more

Workers Compensation Insurance

There comes a time when a person can’t run their business alone, and they need to hire employees. While this means you can take on more cases or focus on the tasks you do best, it also means you have a few extra responsibilities. Most states require employers to have workers compensation insurance, whether you have part-time or full-time employees. Workers comp covers medical bills, lost wages, and any legal fees associated with an employee who got sick or hurt on the job.

A claim from an injured employee may be larger than you think, too. In 2018, work injury costs totaled over $170 billion, and the average claim for a workplace injury is $41,000. There doesn’t need to be a sudden catastrophic event to lead to a workers comp claim, either. For instance, the average carpal tunnel claim totals at $29,918.

Workers compensation insurance for attorneys may cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Should You Get Insurance for Attorneys?

Just because you know the ins and outs of a court case and can expertly defend your clients doesn’t mean you’ll want to find yourself in their shoes. Forty-three percent of small business owners have reported being threatened with or involved in a civil lawsuit. You know that the best defense is being prepared, which is exactly what having business insurance does. Committing to your insurance policy each month is your protection in case of the worst-case scenario.

The average costs small business owners are exposed to without insurance include:

• $30,000 for property damage or accident claims
• $39,000 for work injury claims
• $50,000 for reputational harm claims (e.g., slander or libel)
• $20,000 for a client slip-and-fall case

Attorney liability insurance isn’t just there for you on the worst days, either. Having a certificate of insurance (COI) when you buy your policy through Simply Business also provides new opportunities. Some potential perks include:

• Rent out a room or space for your business
• Convince other people to work with you
• Earn clients’ confidence
• Open another location
• And more!

Attorney Liability Insurance FAQ

• Is attorney insurance required by law?

  Each state establishes its own business insurance requirements. Even if it isn’t required in your state, though, it’s highly recommended. Additionally, in most states, workers compensation insurance is almost always needed if you have part-time or full-time employees.

• Is insurance for attorneys tax-deductible?

  It’s always best to check with an accountant for accurate information for your location, but your business insurance may be tax-deductible. Small business owners usually can deduct the cost of insurance premiums when they file their taxes.

• How much attorney insurance will I need?

  There’s no universal attorney insurance coverage amount, nor should there be. Each business is unique, so every insurance policy is customized. The level of coverage you need depends on the services you provide, whether or not you have employees, your annual revenue, your location, and more.

  You can leave those details to us. Our licensed insurance agents can help you consider the appropriate amount of coverage for you and your practice.

• What should I consider before buying attorney liability insurance?

  Our insurance quote process is easy, but it will go even smoother if you have some of the following information on hand before getting started:

  • Annual revenue estimates
  • Payroll estimates (if you have employees)
  • Information on any previous claims
• Does attorney insurance differ by state?

  Your location impacts your insurance needs, and your state may require specific policies if you:

  • Have employees
  • Rent out office space
  • And more
• What does insurance for attorneys cover?

  A comprehensive insurance policy can usually cover:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Unintentional mistakes
  • And more

  If you work alone, you won’t need to purchase a workers compensation policy.

• How much does attorney liability insurance cost?

  Business insurance isn’t one-size-fits-all, so the cost ranges between practices. Your coverage and monthly premium depend on the following:

  • Payroll estimates
  • Your location or the location of your office
  • The specific legal services you offer
  • And more

  Want to see how much your insurance policy may cost, without commitments or confusion?

  When you fill out our quote form, you can see policy prices from the country’s most trusted insurance providers in just 10 minutes or less.

• What if I perform multiple activities as a business?

  Our licensed insurance agents can help you find coverage to fit many of the services you offer.

Why Choose Simply Business?

Thousands of clients (including attorneys like you) trust Simply Business to protect their business. Simply Business is one of the fastest-growing online small business insurance providers, and we make it easy to compare and choose a business policy from top insurers you can trust.

So why choose Simply Business? It’s, well, simple:

• We’re fast and affordable. We believe getting insured shouldn’t take all day. Our policies are fast, affordable, and ready when you are.

• We’re flexible with coverage. As your business grows, so do your insurance needs. We can get your new business set up with your first policy and help you find more coverage as your practice grows.

• We get your business. One-size-fits-all insurance is outdated. Get the exact coverage your business needs, when you need it.

Years of dedication and hard work have gotten you to where you are, and you’ve come too far to leave your attorney practice vulnerable to accidents. That’s why we offer the best coverage to protect you.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.