Authored by Sara Weathers

Inflation affects more than just office rent and salaries; it directly impacts how well your law firm is protected. As costs rise across the board, many firms may find that their insurance coverage no longer reflects today’s true replacement or liability values.

1. Higher Repair and Replacement Costs
Office equipment, furnishings, and building materials have all increased in price. If a storm, fire, or flood damages your office, outdated property insurance limits may not cover the full cost to rebuild or replace what was lost. Reviewing your property coverage ensures your limits match current market values.

2. Rising Professional Liability Exposure
Inflation can also influence the size of settlements and judgments in malpractice claims. Legal fees, expert witness costs, and court expenses are climbing, making it essential to reassess your Lawyers Professional Liability limits to ensure they align with today’s potential claim values.

3. Increased Cyber Recovery Costs
As cyber threats grow and technology costs rise, so do expenses tied to breach response, data recovery, and client notification. A cyber liability policy that seemed adequate two years ago may fall short now.

4. Conducting an Annual Insurance Review
With inflation impacting every aspect of business operations, law firms should perform an annual insurance review to evaluate current coverage limits and identify potential gaps. Partnering with a broker experienced in insuring law firms can help ensure your protection keeps pace with economic realities.

Even the most careful firm can’t control inflation, but with the right insurance strategy, you can stay ahead of the rising cost of risk.