How much malpractice insurance do I need? Am setting up a solo ECVC shop. Expect to have a high-volume practice for early-stage clients. VHCOL market if that matters. Thinking $300k-$1M should be plenty? TIA.

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Lots of things to consider but I generally recommend a formula of using 80% of your average case value (the client’s value or your legal mal damage) plus 20% of your highest 3 or so average case values, and then double it. So if your average case is worth $100k and your top 3 are worth $1 mil, I like around $500k in coverage ($80k + $200k x 2, rounded to $500k). That being said, $1 mil is probably affordable. I’d play around with considering eroding defense costs to get more coverage. I represent solo and small law firms as outside General Counsel, shoot me a DM if you ever want to chat law firm risk management.

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