Running a law firm means juggling a lot of risks. You've got clients coming through your office, expensive equipment and records to protect, and the constant possibility that something could go wrong—a client trips over a cable, a fire damages your files, or a data breach exposes confidential information. That's where a Business Owners Policy (BOP) comes in. Think of it as a bundled insurance package designed specifically for small to mid-sized businesses like yours.
Here's the thing about BOPs that makes them attractive for law firms: they combine general liability and commercial property insurance into one policy, usually at a cost that's 10-15% lower than buying each coverage separately. But—and this is important—a BOP isn't right for every law firm. Revenue limits, coverage exclusions, and the unique risks of legal practice mean you need to understand exactly what you're getting before you commit.
What a Business Owners Policy Actually Covers
A standard BOP gives you two core coverages. First, there's general liability protection. This kicks in when someone gets hurt at your office—say a client slips on a wet floor in your reception area—or when you accidentally damage someone else's property. If a client sues you claiming they were injured on your premises, your BOP covers legal defense costs and any settlement or judgment, up to your policy limits.
Second, you get commercial property coverage. This protects your physical office space, furniture, computers, law books, and other business property against damage from fires, storms, theft, and vandalism. For a law firm, this is crucial—think about all those expensive legal databases, case files, and office equipment. If a pipe bursts and floods your office, your BOP helps replace damaged property and get you back up and running.
Most BOPs also include business interruption coverage. If a covered event (like that flood or fire) forces you to temporarily close your office, this coverage replaces lost income and helps pay ongoing expenses like rent and payroll while you're getting back on your feet. For solo practitioners or small firms, this can be the difference between weathering a disaster and going out of business.
What's Not Included (And Why That Matters for Law Firms)
Here's where law firms need to pay close attention: a BOP does not include professional liability coverage, also known as errors and omissions (E&O) or legal malpractice insurance. This is the coverage that protects you if a client claims you made a mistake in handling their case—missed a filing deadline, gave bad advice, or failed to identify a key legal issue. For attorneys, this is arguably your most important coverage, and you absolutely must purchase it separately.
Similarly, most BOPs don't automatically include cyber liability coverage. In 2025, law firms are prime targets for cyberattacks because they hold sensitive client information. If hackers breach your system and steal client data, or if ransomware locks you out of your case files, a standard BOP won't cover the notification costs, credit monitoring for affected clients, or ransom payments. You'll need to add cyber coverage as an endorsement or buy a separate policy.
Employment practices liability (EPLI) is another common gap. If an employee or job applicant sues you for discrimination, wrongful termination, or harassment, your BOP typically won't cover it. Depending on your firm's size and employee count, you may want to add this coverage or purchase it separately.
Which Law Firms Are Good Candidates for a BOP
BOPs work best for smaller law firms with straightforward risk profiles. If you're a solo practitioner, a small partnership, or a firm with fewer than 10-15 employees, a BOP is worth considering. Insurance carriers typically impose revenue limits—often in the $5 to $10 million range—so if your firm is pulling in more than that annually, you may not qualify or may need to look at more customized commercial packages.
The type of law you practice matters too. If you run a general practice firm handling wills, real estate closings, and family law, your risks are relatively standard and a BOP can be a good fit. On the other hand, if you specialize in high-stakes litigation, class actions, or areas with elevated malpractice risk, insurers may require you to purchase standalone policies with higher limits and more tailored coverage.
Location also plays a role. If you lease a small office in a low-rise building and don't own the real estate, your property coverage needs are simpler, which makes a BOP more attractive. If you own your building or operate out of a high-value property, you might need more robust commercial property coverage than a standard BOP provides.
What You Can Expect to Pay
Pricing for a law firm BOP varies widely based on your location, firm size, claims history, and the coverage limits you choose. As a rough ballpark, small law firms can expect to pay anywhere from $1,000 to $3,000 annually for a basic BOP. That's significantly less than buying general liability and property insurance separately—hence that 10-15% savings mentioned earlier.
Keep in mind this doesn't include your professional liability premium, which can easily run several thousand dollars per attorney depending on your practice area and coverage limits. When budgeting for insurance, you need to factor in both the BOP and your malpractice coverage as separate line items.
Adding endorsements for cyber liability, employment practices liability, or higher property limits will increase your premium. But in many cases, it's still more cost-effective to enhance a BOP with riders than to cobble together four or five separate policies.
How to Shop for a BOP as a Law Firm
Your best bet is to work with an independent insurance agent who understands the legal industry. Not all BOPs are created equal, and an agent who specializes in professional services can help you identify coverage gaps and recommend the right endorsements for your practice. They'll also shop multiple carriers on your behalf, which is important because pricing and coverage terms can vary significantly.
When comparing quotes, don't just look at the premium. Pay attention to policy limits, deductibles, and exclusions. A cheaper BOP might have lower liability limits or exclude certain types of property damage that are relevant to your firm. Read the fine print on business interruption coverage too—some policies have waiting periods or caps that could leave you underinsured if disaster strikes.
Finally, consider bundling your BOP with your professional liability coverage through the same carrier. Some insurers offer package discounts, and having both policies with one company can simplify claims handling and renewals. Just make sure you're not sacrificing coverage quality for the sake of a bundled rate.
Getting Started with Your Law Firm BOP
If you're a small law firm looking to simplify your insurance and save some money, a BOP is worth exploring. Start by taking inventory of your current coverage—what do you have now, what are the limits, and what are you paying? Then reach out to an independent agent who can assess whether a BOP fits your needs and what endorsements you should add.
Remember, the goal isn't just to find the cheapest policy—it's to get the right coverage for your firm's specific risks. A BOP can be a smart, cost-effective foundation, but you need to make sure it's paired with professional liability coverage and any additional endorsements that protect against the unique exposures law firms face in 2025. Do your homework, ask questions, and don't settle for a one-size-fits-all solution.
