EPIC Law Firm Group Releases Key Trends Driving Law Firm Malpractice Insurance Claims in Annual Survey

Business Wire

The Lawyers Professional Liability Insurer Claims survey finds cyber and attorney oversight to be among the top concerns

WASHINGTON--(BUSINESS WIRE)--
Law firms throughout the U.S. must continue to navigate the challenges posed by malpractice litigation, including rising settlement costs and errors leading to claims, according to the fifteenth annual survey of Lawyers’ Professional Liability Claims (LPL) conducted by Eileen Garczynski, Esq., Principal at EPIC Law Firm Group. The survey examined key trends driving law firm malpractice exposures and claims by polling 11 leading lawyers’ professional liability insurance companies that, on a combined basis, provide insurance to more than 80% of the AM Law 100 and NLJ 250 firms.

“The growing demand for legal services, the pressure to hire top talent, and the necessity to cover operational costs are all drivers of the law firm rates and legal malpractice claim defense costs,” said Garczynski. “Firms must remain hypervigilant to maintain their credibility and avoid the common errors that can prompt costly legal disputes.”

Key findings of the survey include:

The cost of defending malpractice claims continues to increase year over year. Ten of the 11 insurers surveyed reported that the rates they pay defense counsel increased last year. Among them, three saw rates increase by 5% to 10%, and seven noted increases of 2% to 5%.

The three main practice areas generating claims. Polled insurers named Trust & Estate, Business Transactions and Corporate & Securities as the three main practice areas generating claims. Insurance defense work is also seeing a growing percentage of legal malpractice claims.

Cyber and attorney oversight are among the top concerns for malpractice insurers. When asked about specific issues keeping them up at night, the surveyed insurers named cyber and attorney oversight as top areas of concern, as well as AI risks.

“As firms increase flexible work schedules and experience more merger growth the past several years, there is growing concern that some law firms may have blurred the lines of oversight for attorneys working from home, new joiners, and even those transitioning out of the firm,” added Garczynski. “This post-Covid phenomena may be leading to unchecked risks and lapses in accountability.”

The participating insurers in the EPIC Law Firm Group LPL survey were Ascot, Berkley Select, BRIT, CNA, Crum & Forster, Liberty, Markel, QBE, Sompo, Swiss Re Corporate Solutions, and Travelers.

Copies of the survey, 2025 Lawyers’ Professional Liability Claims Survey, may be obtained free of charge by emailing requests to: eileen.garczynski@epicbrokers.com. Those requesting the survey should include their name, title, affiliation, and phone number, and state “LPL Claims Survey 2025” in the subject line.

About EPIC Law Firm Group

The EPIC Law Firm Group serves the insurance, employee benefit and risk management needs of Am Law 200 firms to mid-size boutique firms specializing in complex practices. Our team includes attorneys, former underwriters, risk management specialists and experienced brokers and client executives dedicated to meeting the needs of the legal industry.

About EPIC Insurance Brokers & Consultants

EPIC Insurance Brokers & Consultants is a leader in risk management, providing clients with diverse and specialized property and casualty, employee benefits, and private client insurance solutions. EPIC team members operate from locations nationwide collaborating and innovating to develop comprehensive risk-solutions. For more information on EPIC, please visit www.epicbrokers.com