When the average person hears the words HIPAA, law firms are likely not the first thing they think of. HIPAA, or the Health Insurance Portability and Accountability Act, is most commonly associated with hospitals, doctors, and health insurers. However, here is where things get interesting: law firms are accountable, too.
So, does HIPAA apply to attorneys? The short answer: yes, absolutely if your firm works with protected health information (PHI) on behalf of a covered entity (like a hospital, clinic, or insurance provider). In that case, your firm is considered a business associate under HIPAA, and that comes with a whole checklist of responsibilities.
Unfortunately, many legal professionals don’t realize this until they’re facing a HIPAA violation and a not-so-small fine.
This guide is here to clear the air and answer the questions that matter most:
- Who must follow HIPAA’s requirements?
- What does HIPAA compliance mean for law firms?
- How can your firm avoid common mistakes and stay in the clear?
Let’s unpack what HIPAA compliance with law firms really looks like—and how your firm can meet the requirements confidently and securely.
Does HIPAA Apply to Law Firms?
Here’s a question many law firms don’t ask themselves often enough:
“Does HIPAA even apply to us?”
The short answer? Yes, in certain cases it does.
The longer answer? It really depends on the nature of your legal work.
Most people associate HIPAA — the Health Insurance Portability and Accountability Act — strictly with healthcare providers. But the truth is, if your firm handles cases involving protected health information, HIPAA rules could definitely come into play.
Doctors, hospitals, and insurance companies have to worry about HIPAA. But if your firm handles any kind of medical information on behalf of a client, even once, you might be on the hook too.
So, Who’s Actually Required to Follow HIPAA?
HIPAA splits the world into two main groups:
- Covered Entities – Healthcare providers, insurers, etc.
- Business Associates – Any vendors or partners who work with PHI (Protected Health Information). This can include law firms.
If your firm handles PHI as part of your legal services, even in a limited capacity, HIPAA compliance becomes more than a suggestion; it’s a requirement.
“But We’re a Law Firm, Are We Really Involved?”
Ask yourself: Do you work on any of the following?
- Personal injury or malpractice cases? Then you’re probably requesting or reviewing hospital records.
- Estate planning or end-of-life directives? Healthcare documentation is often involved.
- Workers’ compensation or disability claims?
If you nodded at even one of those, then yes, HIPAA is something your firm needs to pay attention to.
On the other hand, if your practice never touches health information, say, you’re strictly corporate law, you’re likely off the hook. But that’s becoming the exception more than the rule.
Why HIPAA Matters?
HIPAA isn’t just red tape. Non-compliance can lead to some serious consequences:
- Each violation could lead to penalties that climb to $1.5 million, especially in cases of willful neglect.
- Loss of client trust
- Possible legal action if a breach causes harm
And here’s the kicker: most violations don’t come from big breaches, they come from small missteps. A lost USB drive. A risky email. A file left open on someone’s laptop. If your firm handles medical information in any shape or form, you don’t have the luxury of treating HIPAA as “someone else’s problem.” Whether you’re a solo practitioner or part of a larger team, it’s better to get ahead of compliance than be caught off guard.
Key HIPAA Rules for Law Firms
Let’s face it, HIPAA doesn’t come with a shortcut guide, especially for law firms. But if your team works with medical records or health-related documents, you’re dealing with PHI (Protected Health Information), which means these rules do apply.
Here are the three major HIPAA rules that you should be aware of, and more importantly, what they actually mean for your day-to-day practice.
The HIPAA Privacy Rule: What You Can and Can’t Share
This rule sets the ground rules for how protected health data is handled. Think patient names, diagnoses, test results, treatment notes, the kind of sensitive information that belongs behind locked doors (physical or digital).
For law firms, this usually comes into play in cases like personal injury, medical malpractice, workers’ comp, or even estate planning. If you’re using medical records in your work, you’re responsible for keeping them confidential and only sharing them when you have the legal right and the client’s permission to do so.
So no, you can’t forward a file to opposing counsel “just to get their thoughts” unless it’s been cleared. And yes, even a well-meaning mistake can count as a violation.
The HIPAA Security Rule: Protecting What You Store Digitally
While the Privacy Rule focuses on who can access health info, the Security Rule is about how that data is protected, especially when it’s stored electronically (which is pretty much always these days).
HIPAA expects law firms to take three kinds of precautions:
- Technical: Use secure, encrypted systems for storing and sharing files. That means ditching regular Gmail for secure email and making sure your document management software meets security standards.
- Administrative: Create policies around who can access health info, and make sure your team knows those policies inside and out.
- Physical: Even printed records matter. Files shouldn’t be lying around. Lock those cabinets. Limit who can enter the office.
Bottom line: don’t just protect the data, protect the ways it can be accessed, whether digitally or physically.
The HIPAA Breach Notification Rule: What Happens If Things Go Wrong
Nobody likes to talk about breaches, but the truth is they happen even to well-meaning, organized firms. That’s why HIPAA has a rule that kicks in after a breach occurs.
If protected health information gets exposed, maybe someone accidentally sends the wrong file, or a laptop with unencrypted documents is lost, you’re legally required to notify the people affected. For incidents impacting 500+ individuals, both HHS and sometimes the public, through media outlets, must be notified.
And no, you don’t have months to figure this out. You have 60 days to report it, starting the day you discover the breach.
So, Why Does This Matter?
Because HIPAA isn’t just another legal acronym, it’s a serious compliance issue. If your firm touches medical data in any form, these rules apply to you. Not knowing them isn’t a defense. But learning them now? That’s smart lawyering.
Most Common HIPAA Violations by Law Firms
HIPAA violations don’t just happen in hospitals or medical clinics. Law firms, especially those handling personal injury, disability claims, or healthcare disputes, are increasingly finding themselves in hot water for avoidable mistakes. And the penalties? They’re not light.
Here’s a quick rundown of the most frequent missteps we see in legal offices, and why they matter.
1. Sending Emails or Faxes Without Encryption
Let’s start with the biggest one. Law firms often need to send medical records to insurers, providers, or even opposing counsel. But if those documents go out via regular email or an unencrypted fax? That’s a direct HIPAA violation.
Why it matters: PHI includes private medical data that requires strict confidentiality. Sending it through unsecured channels opens the door to breaches and big fines.
What to do instead: Use a secure client portal or HIPAA-compliant email platform. There are plenty of tools built for legal use that make secure file sharing simple.
2. Improper Disposal of Medical Records
Tossing printed medical records in the trash or skipping the shredder might not sound like a big deal, but to HIPAA regulators, it’s a red flag.
Why it matters: Even a single exposed document with patient details is enough to trigger an investigation.
What to do instead: Shred every paper record with PHI. For digital files, use secure deletion software to permanently erase them from your systems.
3. Unauthorized Access to Health Information
This happens more often than most firms admit—an intern peeks at a file they weren’t supposed to, or a staff member accesses records out of curiosity.
Why it matters: Accessing PHI out of curiosity isn’t permitted under privacy laws. Every access needs to be necessary and justifiable under your firm’s role.
What to do instead: Set clear permissions on who can view what. Use software that logs access activity, and routinely audit your system.
4. No HIPAA Training for Staff
Rules that are not clear and concise cannot be followed. And unfortunately, too many firms assume common sense is enough.
Why it matters: If your staff makes a HIPAA mistake and wasn’t trained? That’s on you. The law holds the firm accountable.
What to do instead: Provide annual HIPAA training for all employees, even part-timers. Document the training. Make it a standard part of onboarding.
Why These Mistakes Are Costly
HIPAA violations can cost law firms more than just money, they can damage your reputation, erode client trust, and bring regulatory scrutiny that’s hard to shake. Penalties can reach $50,000 per violation, and if willful neglect is involved, it can go even higher.
Conclusion & Next Steps
For law practices handling protected health information (PHI), HIPAA compliance isn’t a “nice-to-have,” though. Its not just about avoiding legal trouble, it’s about protecting client trust, the integrity of your firm’s reputation, and the orderliness and security of your legal practice.
Ready to Simplify Compliance?If you want a HIPAA-compliant platform designed specifically with law firms in mind, CaseFox is here for you. From encrypted communications to safe document storage, it’s all you need without the headaches of tech.