Here's the honest truth about law firm insurance: it's confusing, and most attorneys don't realize they're either overpaying or underinsured. If you're running a solo practice or small firm, you've probably heard about Business Owner's Policies (BOPs) and wondered whether bundling your coverage makes sense—or if you should keep buying general liability, property insurance, and other policies separately.
The short answer? For most small and mid-sized law firms, a BOP is the smarter financial move. But there are specific situations where standalone policies make more sense. Let's break down exactly when each option works best for your practice.
What's Actually in a BOP for Law Firms?
A Business Owner's Policy bundles three essential coverages into one package: general liability insurance, commercial property insurance, and business interruption coverage. Think of it as the insurance world's version of a combo meal—you get the core protections most law firms need at a lower price than ordering each item separately.
General liability covers the basics: if a client slips on your office floor and breaks an ankle, or you accidentally spill coffee on a client's laptop during a meeting, this handles their medical bills and property damage. Commercial property insurance protects your office space, furniture, computers, law library, and equipment from theft, fire, or natural disasters. Business interruption coverage is the unsung hero—if a fire forces you to close your office temporarily, this replaces your lost income while you're getting back on your feet.
Here's the critical part many lawyers miss: a BOP does not include professional liability insurance (also called malpractice or errors and omissions insurance). That coverage protects you when clients claim your legal advice caused them financial harm—like missing a filing deadline or making an error in a contract. You absolutely need professional liability as a separate policy, and depending on your state, it may be legally required to maintain your license.
The Real Cost Difference: BOP vs Standalone Policies
Let's talk numbers, because this is where BOPs shine. According to 2025 industry data, law firms pay an average of $34 per month for a BOP—that's about $408 per year. Meanwhile, general liability insurance alone costs around $29 monthly ($348 annually). For just five extra dollars a month, you're adding commercial property and business interruption coverage. If you bought those as standalone policies, you'd easily pay $500 to $1,000 more per year.
The savings come from how insurance carriers price their policies. Most insurers require a minimum premium—typically $350 to $500—for each standalone policy they issue. So even if your general liability coverage only costs $300 based on your risk profile, you'd pay the $350 minimum. Same goes for property insurance. With a BOP, you only hit that minimum premium requirement once for the entire bundled package.
There's also the convenience factor. One policy means one renewal date, one set of paperwork, and one claims process. When you're juggling client cases and running a practice, simplifying your administrative life matters.
When a BOP Makes Perfect Sense
Most law firms with fewer than 100 employees and under $5 million in annual revenue qualify for BOP coverage. If that describes your practice, a BOP is probably your best bet. Solo practitioners, small partnerships, and boutique firms handling standard legal work—family law, estate planning, real estate transactions, small business matters—fit perfectly into the BOP model.
You're also a good BOP candidate if you work out of a traditional office space (even if it's just a shared executive suite), maintain a law library or valuable equipment, and meet directly with clients on your premises. The property and liability protections built into a BOP cover these everyday risks without breaking your budget.
BOPs also work well if your coverage needs are relatively standard. The typical BOP includes $1 million per occurrence and $2 million aggregate limits for general liability, which handles most situations small firms encounter. If that coverage level matches what your lease requires or what gives you peace of mind, you don't need the customization that standalone policies offer.
When Standalone Policies Make More Sense
Larger firms or practices with unique risk profiles often need the flexibility that standalone policies provide. If your firm exceeds the BOP eligibility thresholds—more than 100 employees or over $5 million in revenue—you'll need to buy separate coverage anyway.
Specialty practice areas also benefit from standalone policies. If you handle high-stakes litigation, corporate mergers and acquisitions, securities law, or intellectual property disputes, you probably need higher liability limits than a standard BOP offers. Standalone general liability policies let you customize your coverage limits—maybe you want $5 million or $10 million in protection because of the clients you serve or the cases you handle.
There's also the property consideration. If you work from home or operate a completely virtual practice with minimal physical assets, you might not need commercial property coverage at all. Paying for it in a BOP package doesn't make financial sense when your homeowners or renters policy already covers your laptop and home office equipment. In that case, buying standalone general liability keeps costs lower.
Finally, if you have unusual coverage needs—like cyber liability for handling sensitive client data, employment practices liability for a larger staff, or directors and officers insurance—you're already building a custom insurance program. At that point, structuring each policy separately gives you more control and potentially better pricing from specialized carriers.
Making the Switch: What to Consider
If you're currently carrying standalone policies and considering a BOP, the timing matters. Don't cancel your existing policies mid-term—you'll face cancellation fees and coverage gaps. Instead, plan the switch for your renewal dates. Contact an insurance broker who specializes in professional services at least 60 days before your current policies expire. They can quote both options and show you the actual cost difference based on your firm's specific situation.
Going the other direction—from a BOP to standalone policies—usually happens when your firm grows significantly or your practice area shifts. Maybe you started as a solo practitioner handling wills and trusts, but now you're a ten-person firm doing complex business litigation. That's when you'll outgrow a BOP's standardized coverage and need the customization that separate policies provide.
Getting Started With the Right Coverage
The best move is to get quotes for both approaches. Contact an independent insurance broker who works with multiple carriers and ask them to quote you on a BOP and on standalone general liability plus commercial property policies. Compare the total annual cost, the coverage limits, the deductibles, and what's actually included in each option.
Don't forget about professional liability insurance—that's non-negotiable regardless of whether you choose a BOP or standalone policies. Check your state bar requirements, because some states mandate minimum coverage levels. Even if it's not required, carrying at least $1 million in professional liability protection is standard practice.
Running a law firm means managing risk—both for your clients and for your own practice. Getting your insurance right doesn't have to be complicated. For most small and mid-sized firms, a BOP delivers essential protection at the best price. But if your practice has grown beyond the basics or you need specialized coverage, standalone policies give you the flexibility to build exactly what you need. Either way, make sure you're covered before something goes wrong.
