Whether you are a solo attorney with one support staff or a multi-attorney firm with a large back office, you need certainty that your entire operation is protected. Many firms wonder: do non-attorney personnel increase the cost of legal malpractice (lawyers’ professional liability) insurance?
Short answer: No, but the full picture is more nuanced. In this article, we will explain why non-attorney staff typically do not raise your premiums, what factors influence legal malpractice insurance costs, how your coverage is structured, and the key risks firms should be aware of in today’s changing legal landscape.
How law firms’ malpractice premiums are calculated
Before we explore the role of non-attorney personnel, let’s review the major levers that insurers use to determine a firm’s premium. These are the elements carriers consider most heavily:
Number of attorneys
The primary cost driver is how many licensed attorneys at your firm need coverage. More attorneys generally leads to a higher premium.
Practice areas and risk
Some areas of law carry greater inherent exposure (e.g., business transactions, trust & estates, corporate securities). According to the ABA’s 2024 legal malpractice trends, those three fields still account for the greatest share of claims (ABA Journal).
Geographic location
State laws, claim patterns, and court environments differ by jurisdiction. Insurers adjust rates based on historically higher or lower claim frequencies in particular states or counties.
Firm tenure & continuity
How many consecutive years your firm has maintained malpractice coverage matters. Firms with less than five years often face incremental “step rates” (higher rates until they build a track record).
Claims history
Past claims influence underwriting, though not always dramatically. Insurers will assess severity, frequency, how long ago the claim occurred, and whether risk controls were in place.
Risk management practices
This is one area you can control directly. Engagement letters, conflict checks, document protocols, docket systems, and staff training all help reduce exposure and may be rewarded with better rates.
Also read: What is a Claims-Made Policy? Understanding Legal Malpractice Insurance Coverage
The role of non-attorney personnel in coverage
Here is the key point: non-attorney personnel (including paralegals, clerical staff, document assistants, accounting staff, and administrative personnel) are covered by your firm’s lawyers’ professional liability insurance by default. Their work on behalf of the firm is included under the firm’s policy. You do not pay extra for them.
That coverage extends to:
- Past, present, and future personnel performing work under the firm’s name.
- Work done on behalf of the firm (drafting documents, correspondence, research tasks, etc.).
- Liability exposures tied to negligence or omissions in their work, insofar as those tasks relate to firm matters.
Because their coverage is subsumed under the same professional liability policy, insurers do not itemize or surcharge based on the size of your support staff. In effect, the premium “follows the firm,” not each non-attorney worker.
It is generally not possible (or permitted) to carve out coverage for non-attorney personnel alone without compromising the integrity of the professional liability shield.
Additional coverage elements you may not realize are included
Your legal malpractice (or “errors & omissions”) policy often provides more than just liability for bad legal advice. Typical inclusions:
- Defense costs, investigation, and settlement fees
- Disciplinary, regulatory, or bar proceedings
- Cyber liability, crisis response, or data breach extensions (depending on policy)
- Risk management tools, hotlines, or training resources
- Extended reporting (tail) coverage for retiring or non-practicing attorneys
Given the stakes of modern litigation, each of these touches areas where non-attorney personnel may interact (e.g., handling sensitive client data, coordinating filings, managing communication).
Also read: Proactive Strategies for Better Risk Management for Law Firms
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A trend to watch: While claim frequency has remained relatively stable, claim severity is increasing. In 2024, insurers reported payouts rising faster than general inflation. (Law360+1) This intensifying exposure means law firms must be especially disciplined in managing risk. |
Tips to lower your firm’s professional liability premium (without cutting staff)
Many attorneys ask: “If I cannot reduce support staff, what can I do?” Good question. Here are risk-based strategies that insurers favor:
- Strengthen your engagement and disengagement letters
- Maintain centralized docketing and calendaring systems
- Institute conflict-checking protocols, and train your team to spot potential conflicts
- Use checklists, peer review, and oversight for critical documents
- Set up a formal risk management plan or audit system
- Improve cybersecurity and data controls (especially as AI and digital tools become common)
In a legal environment where claims are rising in severity, a robust approach to internal controls is a differentiator underwriters watch.
One emerging risk is the use of generative AI in legal work. As firms adopt AI (for uses such as document drafting and summarization), insurers may scrutinize how lawyers and staff verify AI outputs and preserve confidentiality. Some policies may implicitly or explicitly limit coverage tied to AI misuse or technological failures (Reuters), so cautious use of generative AI tools is crucial.
Also read: Proactive Strategies for Better Risk Management for Law Firms
Staffing size is not the driver, but risk is
Non-attorney personnel do not drive your lawyers’ professional liability premium. Their work is already built into your firm’s coverage. What truly matters are the number of attorneys, claim history, practice area risk, location, underwriting tenure, and how aggressively your firm manages risk.
As legal malpractice claims continue to rise in both cost and complexity, firms cannot afford to overlook comprehensive protection. Having the right coverage in place helps safeguard your attorneys, non-attorney personnel, and your firm’s financial stability.
Learn more about Protexure Lawyers’ Professional Liability Insurance, which provides tailored coverage, competitive rates, and dedicated support for solo, small, and mid-sized firms.
