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Insurers Report First Rise in Legal Malpractice Claims in Years

Published
Score
11

Why it matters

A survey by EPIC Law Firm Group found that legal malpractice claim frequency increased in 2025, ending five years of flat claim counts. Eight of the thirteen insurers reporting to EPIC recorded more claims last year than in prior periods—the first broad uptick across the market since 2020. Insurers and industry observers attribute the rise primarily to uncontrolled use of artificial intelligence in legal work, alongside broader shifts in how lawyers practice and manage risk. Common AI-related errors include faulty legal research, missed citations, confidentiality breaches, and overreliance on automated tools without adequate human review.

The survey captures claims against attorneys and law firms, not medical malpractice. The full scope of the increase—claim severity, geographic patterns, and practice areas most affected—remains unclear. Insurers' specific underwriting responses and any changes to coverage terms have not been disclosed.

The shift signals the legal liability market may be entering a new risk cycle after years of stability. If the trend persists, expect insurers to tighten pricing and underwriting standards, and watch for coverage restrictions tied to AI use. Law firms should anticipate pressure to adopt formal AI-use policies, implement human review protocols, and document oversight procedures. Firms without clear AI governance frameworks face both higher insurance costs and elevated malpractice exposure.

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