What commercial auto insurance do law firms need?

Auto-related liability is an often-overlooked exposure for law firms. While most firms do not own vehicle fleets, attorneys and staff frequently use personal vehicles for business purposes including court appearances, client meetings, depositions, property inspections, and accident scene investigations. This business use creates vicarious liability for the firm.

If your firm owns any vehicles, you need a commercial auto policy covering liability, physical damage, and uninsured motorist protection. Commercial auto policies are rated based on vehicle type, driver records, annual mileage, and geographic territory. For a single firm-owned vehicle, annual premiums typically range from $1,500 to $4,000.

More commonly, law firms need hired and non-owned auto coverage, which protects the firm when employees or partners use personal vehicles or rental cars for business purposes. If an attorney causes an accident while driving to a deposition, the attorney's personal auto policy is primary, but if the damages exceed the personal policy limits or if the personal policy excludes business use, the firm faces excess liability. Hired and non-owned auto coverage fills this gap.

Hired and non-owned auto coverage is typically included in or added to a business owners policy or commercial general liability policy at minimal cost, often $200 to $500 annually. This is one of the most cost-effective coverages a law firm can purchase relative to the risk it addresses.

Firms with attorneys or investigators who spend significant time driving for business should also consider whether their commercial umbrella policy includes auto liability. Most commercial umbrellas sit excess over both general liability and auto liability, providing additional limits for serious accidents.

If your firm uses delivery services, courier services, or employs messengers who drive between offices and courts, ensure that the auto coverage extends to these individuals. The classification of couriers and messengers as employees versus independent contractors affects both the auto coverage and workers compensation requirements.

Review your firm's vehicle use policies annually. Confirm that all employees who drive for business purposes have valid licenses and acceptable driving records. Some carriers offer premium discounts for firms that implement written vehicle use policies and conduct annual driver record checks.