Authored by Sara Weathers
As the year ends, don’t overlook your law firm’s insurance review. A quick check can prevent costly surprises next year as risks, practice areas, and staffing needs evolve.
Here are the key insurance-related steps every law firm should take before December 31:
1. Review Your Lawyers' Professional Liability (LPL) Policy
Verify that your limits, practice areas, and attorney roster are up-to-date and accurate. If your firm handled larger matters or shifted focus this year, your coverage should reflect that.
2. Check Your Cyber Liability Insurance
AI-driven attacks, phishing scams, and ransomware continue to climb. Ensure your policy includes essential protections, such as social engineering coverage, data restoration, and business interruption coverage.
3. Update Property & Business Interruption Coverage
Inflation and extreme weather events make it essential to review whether your limits still match the actual replacement cost of your office space, equipment, and records. Ensure that business interruption coverage would carry your firm through an extended shutdown.
4. Revisit General Liability
From office visitor injuries to advertising exposures, general liability is often overlooked but critical for everyday risk management. Confirm that all locations and operational changes are properly listed.
5. Account for Staffing and Ownership Changes
Add new attorneys, remove former employees, and update partner status. These changes can directly affect multiple policies.
6. Evaluate Third-Party Vendors
Your IT provider, cloud systems, and outsourced support teams should all carry adequate insurance. Year-end is the perfect time to request updated certificates and ensure your firm is protected.
7. Plan for Renewals and Budgeting
Insurance costs can shift year to year. Reviewing your policies now helps you anticipate premium changes and avoid last-minute decisions.
A year-end insurance review is one of the simplest ways to strengthen your law firm’s risk management strategy. By taking a proactive approach now, your firm enters the new year fully protected and better prepared for whatever comes next.
