2026Q1 Liability Insurance Updates
Did you know? CGP’s sister company www.BeltexIns.com, provides cyber insurance and lawyers’ professional liability (LPL) for small and midsize firms. CGP has multiple licensed insurance agents on their team to help clients with advisory services when working with their existing insurance agency.
LPL pricing and coverages continue to be very consistent, with no substantial changes to the market. Small and mid-size firms should expect relatively flat (i.e. same price and terms) renewals. If you are looking to lower your premium, one of the most common tricks is to raise the deductible - is your firm actually going to make a $10k claim? If not, then moving it to $25k or even $50k can result in double digit savings.
Cyber, on the other hand, continues to decrease substantially in price. Aon, one of the largest insurance companies in America, reported an overall industry average of -7% pricing in the first quarter of 2025 alone. Most firms should be seeing flat (i.e. same price) or decreasing renewal pricing, and the reductions have continued strong into 2026 so far.
A few important coverages have become widely available this year for firms of all sizes and security postures:
Business interruption (BI): replaces lost income during a cyber event such as ransomware
Dependent business interruption (DBI): similar to BI, except it covers third-party outages such as your practice management or document management system
System failure: cyber policies previously required a malicious event to trigger a claim, but now many will include system failure, where a mistake during updates or similar situations will still be covered
Pay on behalf of: this has become an industry standard due to market leaders CFC and Coalition. Pay on behalf of means the policy will front the costs, versus the firm having to pay for various costs and services then waiting for insurance to reimburse them
Additionally, many policies also include $250k (or rarely, $500k) in financial crime coverage. Many of these do NOT cover trust/IOLTA accounts, typically phrased as “funds held on behalf of clients”, “escrow”, or similar, so be aware if that is a need for your firm.
Ultimately, if the price went up, your agent should be shopping for savings on your cyber policy this year due to how competitive cyber insurance pricing currently is.
* https://riskandinsurance.com/cyber-insurance-market-reaches-decade-low-pricing-as-claims-surge-22/