How Much Does Lawyer & Law Firm Insurance Cost? 2025 Rates

Lawyers and law firms in the U.S. typically spend between $360 and $480 per year on business insurance. That equals about $30 to $40 per month.

What Drives Premiums

Several factors influence how much coverage will cost:

• Firm size – Solo practitioners usually pay less than larger firms with multiple attorneys and staff.
• Practice area – High-risk specialties such as litigation or corporate law often cost more to insure than lower-risk areas like estate planning.
• Claims history – A clean record helps keep costs down, while past claims can raise rates.
• Location – Firms in busy cities or regions with higher lawsuit rates tend to pay more.
• Coverage limits – Higher limits provide stronger protection but increase monthly payments.
• Years in operation – Established firms with longer track records may qualify for lower premiums compared to newer practices.

Why It Matters

Understanding these cost drivers helps lawyers and law firms budget wisely and choose coverage that matches their professional risks. With the right plan, they can protect their practice without overspending.

How Much Does Lawyer & Law Firm Insurance Cost?

On average, lawyers and law firms spend between $360 and $480 annually on insurance. That equals about $30 to $40 per month. These figures are only estimates, and the actual premium depends on the details of your practice.

Why Costs Differ

No two firms face the same risks. A solo practitioner handling wills and contracts will usually pay far less than a large firm engaged in complex litigation or corporate law.

Practice Area And Location

Specialties such as personal injury or securities law often carry higher premiums because of the increased likelihood of lawsuits and costly claims. Location also matters—firms based in cities with frequent legal disputes or high settlement payouts tend to pay more than those in smaller, lower-risk regions.

Key Cost Drivers

Several factors influence how much you’ll pay for coverage:

• Claims history – Filing past claims often raises premiums, while a clean record can lower them.
• Property size and value – Larger offices or costly assets increase commercial property insurance costs.
• Number of employees – More staff means greater liability exposure and higher workers’ comp expenses.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Why This Matters

Understanding these variables helps lawyers and law firms estimate insurance needs more accurately and budget for the real costs of protecting their practice. With the right coverage, you can safeguard your firm without overspending.

Average Lawyer & Law Firm Insurance Costs For Coverage Types

When it comes to protecting your lawyer & law firm, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most lawyers & law firms need.

General liability insurance: $30 per month

Business owner’s policy: $51 per month

Workers’ compensation insurance: $56 per month

Commercial auto insurance: $158 per month

Commercial property insurance: $150 per month

Surety bonds: $6 per month

General Liability Insurance

The average cost of general liability insurance for a lawyer and law firm is about $30 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a client visits your office and slips on a wet floor, this policy can help cover their medical bills and any legal costs if they decide to sue. It can also protect your firm if you’re accused of causing reputational harm through advertising or public statements.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the firm size, location, customer traffic volume, previous claims history, and any additional insured endorsements.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for lawyer and law firm businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, services offered, claims history, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $51 per month for lawyers and law firms.

A BOP bundles general liability insurance with commercial property insurance. It protects against loss and damage to your office space, furniture, equipment, and important documents. For example, if a small electrical fire damages your office’s reception area and destroys computers and client files, a BOP would help cover the cost of repairs, replacements, and recovery, allowing your firm to get back to work with minimal disruption.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the property value, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for lawyer and law firm businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, services offered, claims history, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a lawyer & law firm is around $56 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a paralegal slips on a wet floor in the office and injures their back, workers’ comp would help pay for their medical treatment and provide wage replacement while they recover, ensuring both the employee and the firm are protected.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for lawyer and law firm businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for lawyers & law firms is about $158 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an attorney gets into a car accident while driving to a courthouse for a client meeting, this policy would help cover the cost of vehicle repairs and any third-party injury or property damage claims, shielding the firm from out-of-pocket expenses related to the incident.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for lawyer and law firm businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, and insurer underwriting practices.

Surety Bonds

The average cost of surety bonds for lawyers & law firms is about $6 per month.

Surety bonds are a type of financial guarantee. They are a promise made by a third party (called the surety) to pay money if one party (usually a business or professional) fails to meet their legal or contractual obligations.

For example, a lawyer is appointed by the court to manage a client’s estate. To ensure they handle the funds properly, the court requires a probate bond. If the lawyer misuses the estate’s money, the bond protects the beneficiaries by covering the financial loss.

Average annual premiums by state:

Note: These estimates are based on average national Surety Bonds Insurance premiums for lawyer and law firm businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on bond type, coverage limits, claims history, and insurer underwriting practices.

Lawyer And Law Firm Business Insurance Costs By Provider

Lawyer and law firm business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for law firms, typically including professional liability (legal malpractice/errors & omissions), general liability, and business owner’s policies. Actual premiums will vary depending on factors such as firm size, practice area, location, claims history, and coverage limits.

What Factors Impact Your Lawyer & Law Firm Insurance Costs?

Insurance premiums for lawyers and law firms are based on the overall risk profile of the practice. Underwriters weigh factors such as firm size, practice area, office location, property value, and claims history when setting rates.

Claims History

A record of frequent claims can raise premiums, as insurers see this as higher risk. Maintaining a clean history often helps secure discounts and lower costs.

Type Of Legal Practice

Not all practice areas carry the same risk. Firms handling personal injury, class actions, or securities law typically face higher premiums than those focused on estate planning, real estate, or contract law. High-risk work increases the likelihood of lawsuits and costly claims.

Value Of Office Property And Equipment

Owning expensive office furniture, technology, or storing sensitive client files onsite raises commercial property insurance costs. Firms may also need added protection against data breaches or equipment breakdowns.

Location Of The Office

Where your firm operates matters. Offices in large cities or regions with high crime or frequent lawsuits often pay more for coverage compared to those in quieter, low-risk areas.

Size Of The Firm

The number of attorneys, staff, and clients directly impacts insurance costs. Larger firms face greater exposure to malpractice claims, workplace injuries, and liability risks, which increases premiums.

Use Of Company Vehicles

If your firm owns vehicles or attorneys regularly drive for work, commercial auto insurance becomes necessary. Frequent business use raises risk and can add to overall costs.

How To Lower Your Lawyer & Law Firm Insurance Costs

Running a law practice can be expensive, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical ways to cut costs without losing protection.

Raise Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just be sure you can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation through the same provider can unlock additional discounts while simplifying paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Offices

Accidents and hazards can quickly drive up insurance costs. Keeping walkways clear, securing cables, maintaining proper lighting, and addressing risks like wet floors all help reduce liability. Training staff on workplace safety, data security, and client confidentiality further lowers the chance of claims.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on ergonomics, safe lifting, and posture during long desk hours reduces injuries. When fewer claims are filed, premiums stay lower.