Skip to main content
Law Firm Insurance

Business Owners Policy for law firms

Bundles property protection and general liability into a single, cost-effective policy tailored for law office operations.

Business Owners Policy insurance for law firms

Key Takeaway

Bundles property protection and general liability into a single, cost-effective policy tailored for law office operations. Law firms invest heavily in office buildouts, technology infrastructure, and physical case files that would be expensive to replace after a loss.

Overview

A Business Owners Policy (BOP) combines commercial property insurance and commercial general liability coverage into one package, often at a lower premium than purchasing each separately. The property component covers your office space, furniture, law library, computer equipment, and important documents against fire, theft, vandalism, and other covered perils. The general liability component protects against bodily injury and property damage claims from third parties, such as a client slipping in your lobby or damage caused by a burst pipe affecting a neighboring tenant. Many BOPs also include business interruption coverage, which replaces lost income if a covered event forces your office to close temporarily.

Why it matters for law firms

Law firms invest heavily in office buildouts, technology infrastructure, and physical case files that would be expensive to replace after a loss. General liability claims from clients and visitors on your premises are more common than most firms realize. A BOP provides foundational risk protection that landlords, lenders, and lease agreements typically require as a condition of occupancy.

Typical Limits

General liability limits within a BOP are commonly $1,000,000 per occurrence and $2,000,000 aggregate. Property limits are set based on replacement cost of the office contents and tenant improvements, typically ranging from $50,000 for solo practitioners to $500,000 or more for larger firms. Business interruption coverage usually provides 12 months of income replacement. Medical payments coverage for injured visitors is typically $5,000 to $10,000 per person.

Coverage at a Glance

FeatureSmall Firm (1-5 attorneys)Mid-Size Firm (6-25 attorneys)Large Firm (25+ attorneys)
Typical Limit$500K/$1M$1M/$3M$5M+
Typical Deductible$2,500-$5,000$10,000-$25,000$25,000-$100,000
Annual Cost Range$2,500-$8,000$15,000-$60,000$50,000-$500,000+
Priority LevelEssentialEssentialEssential

Frequently asked questions about business owners policy

Can a BOP cover multiple office locations?
Yes. Most BOPs can be endorsed to cover multiple locations, with each location's property limits and specific address listed on the declarations page. Some carriers offer blanket coverage that applies a single property limit across all locations, which provides flexibility if property values vary between offices.
Does business interruption cover pandemic-related closures?
Most BOP business interruption provisions require direct physical loss or damage to the covered property. Courts have overwhelmingly ruled that pandemic-related closures do not constitute physical loss. Some carriers have added explicit virus/pandemic exclusions. Review your policy language carefully, but expect that pandemic closures are not covered.
Should I insure at replacement cost or actual cash value?
Replacement cost is strongly recommended for law firm BOPs. Replacement cost pays to replace damaged property with new items of like kind and quality. Actual cash value deducts depreciation, meaning you receive less than the cost to replace your equipment. The premium difference is modest and the coverage improvement is substantial.
Does a BOP cover theft of client files or records?
Yes, the property component of a BOP typically covers valuable papers and records, which includes client files. Coverage pays for the cost of reproducing or restoring the records. Some policies also include coverage for the cost of research and labor to reconstruct lost information, subject to a sublimit.
What liability does a BOP cover that my lease requires?
Most commercial leases require tenants to carry general liability coverage ($1M/$2M limits), property coverage for tenant improvements, and name the landlord as additional insured. A standard BOP satisfies all three requirements. Review your lease's specific insurance provisions and provide a certificate of insurance to your landlord.

Common questions about business owners policy

What insurance do real estate attorneys need beyond malpractice?Real estate attorneys need professional liability as their foundation, plus cyber liability for handling wire transfers ...What insurance does a law firm need for its employees?Law firms with employees (paralegals, secretaries, administrators) need workers compensation (legally required in most s...How does a general practice firm structure insurance to cover multiple risk areas?General practice firms need a comprehensive insurance program addressing their highest-risk practice area since carriers...What are certificate of insurance requirements for law firms?Many clients, courts, and landlords require law firms to provide certificates of insurance verifying active malpractice ...

Review your business owners policy coverage

Find out if your current business owners policy meets best practices for your firm size and practice areas.

Free coverage review for law firms.