Law Firm Insurance: 2025 Q3 Updates
Lawyers’ professional liability (LPL) pricing and coverages continue to be very consistent, with no substantial changes to the market. Small and mid-size firms should expect relatively flat (i.e. same price and terms) renewals. If your firm has experienced a claim and has made strong changes to prevent the same type of incident from occurring again, many carriers will consider more aggressive pricing.
Cyber insurance on the other hand continues to decrease substantially in price. Aon, one of the largest insurance companies in America, reported an overall industry average of -7% pricing in the first quarter of 2025 alone. Most firms are seeing flat (i.e. same price) or decreasing renewal pricing. If your firm is currently lacking in certain areas of coverage, request with your current agent to investigate more coverage. A few important coverages have become widely available this year for firms of all sizes and security postures:
Business interruption (BI): replaces lost income during a cyber event such as ransomware
Dependent business interruption (DBI): similar to BI, except covers third party outages such as your practice management or document management system
System failure: cyber policies previously required a malicious event to trigger a claim, but now many will include system failure, where a mistake during updates or similar situations will still be covered
Additionally, many policies also include $100k - $250k (or rarely, $500k) in financial crime coverage. Most of these do NOT cover trust/IOLTA accounts, typically written as “funds held on behalf of clients” or similar, so be aware if that is a need for your firm. A standalone crime policy may be available for trust coverage, although that is a very rare type of claim.
Ultimately, your firm should be aggressively shopping for a savings on your cyber policy this year with how much pricing has decreased.