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Law Firm Insurance

Coverage Comparisons

Side-by-side comparisons to help you understand your law firm insurance options.

Claims-Made vs Occurrence PoliciesClaims-made policies cover claims filed during the active policy period, regardless of when the incident occurred (as long as it falls after the retroactive date). Occurrence policies cover incidents that happen during the policy period, no matter when the claim is eventually filed. This distinction has major implications for long-tail liability exposures that law firms commonly face.
Admitted vs Surplus Lines CarriersAdmitted carriers are licensed and regulated by the state department of insurance, with their rates and policy forms subject to approval. Surplus lines (non-admitted) carriers operate outside state rate regulation and are used when admitted markets cannot provide adequate coverage. Understanding the trade-offs is critical when selecting insurance for a law firm.
Solo Practice vs Firm PolicySolo practitioners can purchase individual professional liability policies, while firms of two or more attorneys typically need a firm-wide policy covering all attorneys and the entity itself. The choice affects coverage scope, cost allocation, and risk management. Even solo attorneys who share office space with other lawyers must carefully consider which approach protects them best.
Deductible vs Self-Insured RetentionBoth deductibles and self-insured retentions (SIRs) represent the amount a law firm must pay out of pocket before insurance coverage kicks in. However, they function differently in terms of when the insurer begins participating in a claim and who controls the defense. These structural differences can significantly affect a firm's cash flow and claims experience.
Defense Inside vs Outside LimitsDefense inside limits (also called eroding limits or burning limits) means defense costs reduce the total policy limit available to pay a judgment or settlement. Defense outside limits means the insurer pays defense costs separately, preserving the full policy limit for indemnity payments. This distinction can dramatically affect how much coverage is actually available when a claim goes to trial.
Standalone Cyber vs EndorsementLaw firms can obtain cyber liability coverage through a standalone policy or as an endorsement added to an existing policy such as a BOP or professional liability policy. As custodians of highly sensitive client data, law firms face significant cyber risk, making the scope and quality of coverage an important decision. The right choice depends on the firm's size, data exposure, and risk tolerance.
BOP vs Separate GL and PropertyA Business Owner's Policy (BOP) bundles general liability and commercial property coverage into a single policy, often at a discounted rate. Alternatively, firms can purchase standalone general liability and commercial property policies separately. The choice affects pricing, coverage flexibility, and how well the policies align with a firm's specific risk profile.
Per-Claim vs Aggregate LimitsPer-claim limits define the maximum the insurer will pay for any single claim, while the aggregate limit caps the total the insurer will pay for all claims during the policy period. Understanding how these two limits interact is essential for sizing coverage appropriately, especially for firms that may face multiple claims in a single year.

Free coverage review for law firms.