Insurance Exposure Checklist for the Business of Law

November 8, 2018

Check ListToo often law firms are so focused on the legal malpractice insurance exposures they neglect to protect the assets needed for running the law practice.  The following check list is just a start to get the firm thinking about the other exposures that may or may not need insurance coverage.

1. Are you responsible for the Building you are in?

       Own the Building

       Rent the Building

___ Condo ownership

___ Office in residence

 

2. Are you responsible for the Permanent Attachments to the building, Fixtures, and

Equipment for servicing the premises:

       Not responsible rent

___ Responsible for common areas and rent

___ Responsible for improvements in condo ownership or renter

       I am responsible for all property

 

3. Business Personal Property and Property of Others:

       The owner of the equipment in my office

       Care, custody, control of the property of others ie do you lease equipment like a copier?

___ Have mobile equipment provided to employees such as computers and cell phones

 

4. Income Protection if there was a disaster:

       Lose money if I could not operate my practice.

       Would not be able to pay my employees If could not operate

       Could not pay my expenses if I could not operate

        Would have extra cost to continue my business after a disaster at this location or

at another location

___ Do you have another space to relocate to if need be for a period of time

 

5. Practice has employees or contract employees?

___ Workers Compensation Insurance

___ Employment Practices Liability Coverage

 

6. Have Trust/IOTA Accounts

___ Crime Insurance

___ Clients required to be names on crime coverage

       Money and Securities

 

7. Have Data Breach/Cyber Liability Exposures, store sensitive information about clients on computers, servers or paper files

___ Data Breach/Cyber Insurance

___ Clients that require Data Breach/Cyber Insurance

 

8. Does firm use autos for business?

___ Employees Occasionally use Personal autos

___ Employees Frequently use Personal autos

___ Firm Leases autos for employees

___ Firm owns autos used by employees

 

9.  Other Insurance needs?

___ Directors & Officers/Management Liability Insurance

___ ERISA Bonds

___ Employee Benefits Errors & Omissions coverage

___ Excess Insurance – Professional Liability Insurance

       Flood Insurance

___ Earthquake Coverage

___ Surety Bonds

___ Umbrella Insurance

 

 

10. Do you need coverage for any of the following: Check all that apply

     _ Valuable Papers & Records

___ Law Library

___ Art Work

       Newly Acquired or Constructed Property

        Accounts Receivable

        Exterior Signs, Lights and Clocks

        Glass

        Fire Department Service Charge

        Fire Extinguisher Recharge

        Electronic Data Processing Equipment Coverage-Property

        Other, Describe unusual property you my own:

 

11.  Specific Insurance Coverage questions:

___ Number of years Owned Business (____)

___ Have current insurance coverage

        ___ If no have had coverage in past let lapse

        ___ Will provide copy of expiring coverage(s)

__ The legal status of entity is:

        ___ Corporation

        ___ Partnership

        ___ LLC/PA/PLLC etc.

___ More than one location

___ Had nonprofessional liability insurance claims?

 

 

The above checklist is not an all-inclusive list.  It is only intended to provide a general guide to possible exposures for Small Law Firm. Actual insurance policies contain specific details of the coverages, conditions and exclusions.

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