How should solo practitioners structure their insurance program?

Solo practitioners face the same insurance exposures as larger firms but must build their coverage program with tighter budget constraints. Prioritize the coverages that address your most significant risks and add supplemental coverages as your practice grows.

Malpractice insurance is the essential starting point. A solo practitioner should carry at least $250,000 to $500,000 per claim for low-risk practice areas and $500,000 to $1 million for moderate to high-risk areas. First-year claims-made premiums for solo practitioners typically range from $1,500 to $5,000 depending on the practice area and state. Remember that premiums increase annually as the policy matures, so budget for step increases over the first five to seven years.

A business owners policy bundles commercial property and general liability coverage into a single, cost-effective policy. This covers your office contents, business equipment, and liability for injuries or property damage at your office. If you work from a home office, your homeowner's policy does not cover business property or business liability, making a BOP essential. Annual premiums for a small BOP start at $500 to $1,500.

Cyber liability insurance is increasingly non-negotiable given the sensitive client data every attorney handles. A $500,000 to $1 million cyber policy costs a solo practitioner $500 to $1,500 annually and covers data breach response, ransomware, and network security liability. Once you hire employees, add workers compensation, which is mandatory in most states, and consider employment practices liability insurance. As your practice grows and you bring on staff, of-counsel, or contract attorneys, revisit your malpractice limits and consider adding a commercial umbrella policy for additional protection across all liability lines.