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Posted on: August 13, 2025 by Huntersure
Law firm mergers and acquisitions (M&As) are accelerating, driven by factors like globalization, technological investment, specialization, competitive pressures, and evolving client expectations. These consolidations are reshaping the legal industry and raising liability exposure in ways agents must proactively address.
As firms expand their geographic footprint, diversify practice areas, and absorb leadership transitions, they face heightened risks — from inheriting undisclosed client conflicts to experiencing gaps in prior-acts coverage. Understanding the interplay between M&A activity and large law firms’ professional liability insurance is essential for insurance agents guiding clients through these complex transitions.
Professional liability insurance — often referred to as errors and omissions (E&O) coverage — protects law firms against claims of negligence, malpractice, or conflicts of interest. While this coverage is always essential, it becomes especially vital during mergers, when firms inherit not only new talent and clients but also unresolved disputes and potential liabilities.
The integration process is complex. Merging firms may discover overlapping client relationships that create new risks, legacy clients may raise concerns, and existing policies from each firm may not align. Without proactive coverage adjustments, the merged entity could find itself underinsured at the exact moment its exposure peaks.
Agents should encourage their clients to review liability policies early in the M&A process. Assessing exposures before integration helps avoid costly gaps later. Areas of focus include:
Red flags to watch in law firm M&As include:
One of the most common questions is: How much does professional liability insurance typically cost? For large law firms, premiums vary depending on several factors:
Agents should set expectations with clients that premiums are likely to rise after a merger and that reassessment is standard during due diligence.
Huntersure provides agents with the expertise and flexibility to address the unique exposures of law firm M&As. Our underwriting team is experienced in handling complex, multi-jurisdictional firms, offering customizable policy structures across both primary and excess layers.
Proprietary systems allow for quick, responsive adjustments during transactions, while a broad appetite ensures coverage solutions for diverse practice areas. Most importantly, Huntersure’s claims professionals understand the challenges of defending firms with overlapping or legacy exposures, providing confidence when uncertainty is highest.
For agents, guiding clients through M&As isn’t only about negotiating a policy — it’s about safeguarding reputations and financial stability. The right coverage ensures that unresolved disputes, prior acts, and integration hiccups don’t turn into catastrophic liabilities.
With Huntersure, agents have a partner who not only delivers coverage but also helps law firms navigate the gray areas of transition. If your clients are considering a merger or acquisition, now is the time to review their professional liability programs. Reach out for a quote today.
Professional liability insurance, or E&O, protects large firms from claims of negligence, malpractice, or conflicts of interest. During mergers, it becomes especially critical, as exposure to these risks increases.
Costs depend on firm size, practice areas, claims history, and the status of the merger. Premiums are likely to rise as exposures expand, so agents should prepare clients for reassessment during and after the transaction.
As early as possible, ideally during due diligence. Identifying gaps before a letter of intent is finalized helps prevent exposure and gives the merged firm a more seamless transition.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: Lawyer's professional liability insurance Professional Liability Professional Liability Insurance