Lawyers' Professional Liability in Connecticut: What Firms Should Carry Even Though It Is Not Mandatory

Short answer: Connecticut does not require lawyers to carry professional liability insurance; only a few states mandate it. But a single missed deadline or closing error can produce a claim larger than a small firm's assets, so most Connecticut firms carry lawyers' professional liability (LPL), written claims-made, with attention to prior acts, tail coverage, and defense-cost structure. Firms handling real estate closings and escrow also need strong cyber and crime coverage for wire fraud.

How LPL works

• Claims-made and reported: covers claims first made and reported during the policy for work after the retroactive date. Keep prior-acts coverage when changing carriers.
• Defense inside or outside limits: many policies erode the limit with defense costs. "Claims expense in addition" options preserve the limit for settlements.
• Per-claim and aggregate limits sized to the firm's matters; real estate, trusts and estates, and securities work carry larger potential losses.
• Disciplinary proceedings coverage for grievance defense is commonly included at a sublimit.

Lateral hires, departures and retirement

Lawyers joining a firm bring prior-acts exposure; confirm the firm's policy covers it or that their prior firm's coverage does. When a lawyer retires or a firm dissolves, an extended reporting period (tail) is essential, since malpractice claims often surface years later. Some carriers provide free retirement tails after a period of continuous coverage.

Real estate closings, escrow and wire fraud

Connecticut residential closings are attorney-driven, which makes law firms prime targets for business email compromise. A diverted payoff or proceeds wire may fall outside LPL, depending on the policy. Firms need cyber coverage with social engineering and funds-transfer fraud at realistic limits, crime coverage, and strict call-back verification for every wire instruction. See closing wire fraud and cyber liability.

The rest of the program

A business owners policy for office property and premises liability, employment practices liability, and workers' compensation complete the core. Lawyers serving on client or nonprofit boards should confirm outside directorship coverage; see D&O.

New England Insurance, an independent Connecticut agency in Bridgeport since 2012, coordinates law firm cyber, crime and office coverage alongside the firm's LPL. Request a review.