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Common client requests for law firms are for types of liability insurance. Clients have increasingly requested a waiver of subrogation to go along with their professional liability insurance or general liability insurance policies. So, what exactly is a waiver of subrogation? What is subrogation? In simplest terms, subrogation is when an insured party agrees to […]

Emotional Distress in Malpractice Claims Emotional distress is not uncommon in malpractice cases. Some jurisdictions have expressly permitted the recovery of such damages, while other jurisdictions don’t have any law addressing this potential healing area. A few states have addressed this issue in the past year, and the decisions are worth noting. Last year, the […]

Workers Comp Audits All workers comp policies require a premium audit at the end of each policy period.  The audit is done because your premium is actually a payroll function, meaning the higher the payroll, the more you pay in premium.  The audit will determine the difference between your estimated payroll and actual payroll, and […]

What are “covered auto symbols” on a commercial auto policy (BAP)? Commercial auto insurance policies protect several different parties; you, your vehicle, and others. Covered auto symbols allow you to customize the extent that liability coverage is extended to these parties. The symbol may pertain to either a kind of vehicle (i.e., private passenger) and/or […]

Admitted Insurance Company vs. Non-Admitted Insurance Company for law firms is very specialized.  As such, we often work with both admitted insurance companies and non-admitted insurance companies. In this post, we want to discuss the difference between the two types and why this is so important to your law firms.   Admitted Insurance Carriers   […]

Engagement Letter Defense An engagement letter is typically the first line of defense. It clarifies obligations, the scope of duties, the client’s identity, billing terms, and other vital clauses that are generally a must for most engagements. They may also include exculpatory language such as limitation of liability provisions, damages caps, or different contractual language, […]

What does Wear and Tear Exclusion mean? An insurance contract’s wear and tear exclusion provision states that the policy does not cover degradation from everyday, normal use. Because every property piece deteriorates over time, insurers would be too expensive to cover such losses. Insurance only covers losses due to unexpected events. Normal wear and tear […]

Employment Practices Liability Insurance Did you know that according to a Jury Verdicts Research study conducted that over 40% of employers with between 15 and 100 employees will experience some discrimination claim?  Did you also know there is a 67% chance the plaintiff award will exceed $100,000? Those are some pretty harrowing statistics, and litigation […]

Why Cyber Crime Insurance Coverage is Critical Cyber insurance is designed to protect a business when costs are incurred due to cybercrime. Business owners should note that common insurance policies such as commercial property, business income, and general liability often restrict—and in many cases exclude—cyber-related damage. Business owners beware: You should be skeptical of enhancements to […]

Most Common Malpractice Claims for Attorneys Understanding where and why malpractice claims happen can help you proactively take steps to reduce the likelihood that a claim will be made against you. So, what is the most common of all the malpractice errors that lawyers can commit? You are correct if your answer is a failure […]

Standard business liability coverage will take care of you in most situations, but commercial umbrella insurance will help ensure that your business is protected when serious situations arise. Learn what an umbrella policy is and how it works. What is umbrella insurance? Umbrella liability insurance protects you when accidents happen, and your existing liability insurance […]

Controlling Liability Risks pt. 2 Controlling liability risks for your law firm is vital to ensure you avoid unnecessary claims and litigation. You may find extensive and specific information on reducing liability risk exposures from your insurance company, trade association, and the Internet for almost any type of venture. Briefly discussed here are some areas […]

Controlling Liability Controlling liability risks can be tremendously important for a law firm. A person cannot prevail in a liability lawsuit against your law firm unless he or she can convince the judge, jury, or another adjudicator that you breached your legal duty to that person. Examples of such duties include: Making a reasonable effort […]

Frivolous Lawsuit Leads to Serious Damages Many attorneys will encounter a lawsuit they believe to be potentially frivolous at one point or another. These claims often lead to frustration for the defense attorney and Client, who may face two complex alternatives: (a) settle the case to avoid defense costs or (b) expend time and money […]

Crime Insurance – Money & Securities Coverage Even though law firms aren’t a very cash-heavy business, that doesn’t mean they don’t have some on the premises.  Surprisingly, cash is one of the items listed as “property not covered” on the standard property policy.  Not to worry, though, there is actually a specialty policy that will […]

  Premises Medical Liability Insurance Coverage Should your law firm have a physical location, you may be at risk for customers sustaining injuries on your property. Premises liability insurance coverage is designed to address such injuries. Typically, customers who may bring lawsuits against you and your firm for injuries on your premises may accuse you […]

Basic Workstation Ergonomics Overuse injuries are one of the most significant risks law firms face regarding worker’s compensation injuries. The following is a list of basic ergonomic tips to avoid overuse injuries: Keyboards Place the keyboard in a position that allows the forearms to be close to the horizontal and the wrists straight. That is, […]

Cyber Security Best Practices Law firms are the same as any other company in countering cyber attacks and protecting their confidential and proprietary data. The only difference is that law firms have ethical rules that require confidentiality of attorney-client and work product data. That does not make them unique, however, because accounting firms, engineers, and […]

Understanding Commercial Insurance Property Rates Insurance companies use underwriting to determine how likely your business is to file a claim. The greater the likelihood of a claim, the higher the premium. If an insurance company determines that your business is at increased risk for a loss, it may decline to issue you a policy. Fire […]

What is an additional insured? We are often asked what an additional insured is and why it is required on some law firm insurance policies. Hopefully, the following definition will provide some insight: A person or organization is not automatically included as an insured under an insurance policy that is incorporated or added as an […]

Why your firm should consider umbrella insurance. Umbrella insurance provides liability coverage over and above the coverage afforded by your basic general liability policy. If you have also purchased commercial auto liability or employer’s liability coverage, your umbrella should also apply excess of that coverage. To understand how an umbrella works try thinking of it […]

Partnership by Representation Concerns It is not uncommon for attorneys to join forces to defray costs, and this often means sharing office space, support staff, and equipment. Some attorneys take this further, advertising themselves as a partnership even if their practices remain separate. Such arrangements should be made with caution, as they may lead to […]

Tenant Improvement and Betterment Insurance One of the questions we frequently receive from our law firm clients is properly insuring property inside a leased location. Many firms have to put significant investments into leased property so they can make them ready. We will then frequently be asked how you insure the build out done on […]

Law Firm Property Insurance Commercial property policies aren’t standardized, and insurance companies must meet minimum state requirements but may create their policies. As a result, coverages, and policy terms will vary by the insurance company and policy. In a single policy, commercial multi-peril (CMP) policies combine several coverages — such as commercial property, liability, inland […]

Commercial Property Insurance for Law Firms Commercial property insurance helps law firms pay to repair or replace buildings and other property damaged or destroyed because of fire, storm, or other incidents covered by the owner’s policy. It also pays to replace stolen or lost property. Business owners can buy commercial property insurance regardless of owning, […]

Considerations When Changing Firms Most attorneys don’t end their careers in the same place they started. Instead, many attorneys make a move or two that may require the transfer of files and clients. When an attorney transfers a file to a new firm, the prior Firm must maintain certain ethical obligations. The lawyer must provide […]

Replacement Cost Versus Actual Cash Value There are various ways that your insurance company can calculate the amount it will pay you for a loss. However, the two most common ways are replacement cost and actual cash value. Each method is different, and it’s essential to understand the difference between the two when purchasing a […]

What is EPLI insurance? EPLI insurance covers law firms against claims by workers that their legal rights as employees of the firm have been violated. The number of lawsuits filed by employees against their employers has been rising. While most suits are filed against large corporations, no company is immune to such lawsuits. Recognizing that […]

Flood Insurance One of the insurance coverages needed by law firms, but purchased by very few, is flood insurance. While this coverage may not seem necessary, the flood definition is broad and includes much more than just a standard flood. While we usually envision floods as large overflowing rivers that inundate towns, insurance companies define […]

Liability for Delegated Tasks Most professional liability cases involve an attorney’s direct negligence. Often, though, an attorney may be responsible for delegating tasks to others. The question is, then, can the delegating attorney avoid liability because the alleged negligence was committed by someone else? According to a recent South Carolina opinion, the answer is no. […]

Why law firms need D&O insurance More and more lawsuits are being brought against directors and officers, which is why they need D&O insurance. Typical areas of dispute include hiring and firing decisions, employee supervision, the application of assets, and the interpretation of nonprofit charters. One of the biggest misconceptions is that general liability insurance […]

Why do law firms need directors and officers insurance Directors’ and Officers’ liability insurance is most often associated with large for-profit companies; however, they are not the only ones that need it. Nonprofit directors and officers may have an even more demanding job because the operations may be less familiar to the individual, and they […]

Return-to-Work Procedures In working with law firms, we have found that many employees don’t know how to report an injury or where to go for treatment.  With that in mind, we want to share some tips for helping employees report injuries but, more importantly, return to work in a quick, efficient fashion. Steps after the […]

Preventing Repetitive Stress Injuries One of the most common employee-related injuries within a law firm is a repetitive stress injury. Repetitive Stress Injuries are common for anyone that does any of the following: Sit at a desk in front of a computer all day? Drive a bus or operate heavy equipment? Stretch your arms or […]

Sewer Backup One of the most overlooked but essential insurance coverage a law firm can purchase is sewer and drain backup coverage. What is “Sewer Backup”? Large rain storms and floods can cause extensive water damage, but they can also cause sewage lines to overfill and back up into your law firm through the drain […]

Importance of Client Documentation While it is impossible to avoid every single potential claim, there are plenty of risk management steps that can be taken to at least help defend such a suit. One of the most important steps that can be taken is to maintain proper documentation of your communications with clients.   This […]

EDP Insurance Coverage Electronic Data Protection (EDP) Insurance coverage can be one of the most crucial insurance coverages your law firm can purchase. The data stored on computers and servers is one of the essential items firms possess. EDP protects you if all of your firm’s data is lost or destroyed. Electronic data loss insurance […]

Preparing a Disaster Recovery Plan Law firms face a variety of risks. There are the natural disaster risks like fire, flood, and snowstorms, And then there are other risks like litigation from property damage or bodily injury or theft and data loss. The key for firms to rise above all these risks is preparation. Your […]

What is employee benefits liability? Most law firms offer health insurance to their employees. And while those benefits help attract and retain qualified workers, errors in your plan’s administration can lead to lawsuits against your firm. For example, suppose your firm hires a new paralegal. The new hire completes the necessary paperwork to be enrolled […]

Dual-role Employees A risk management position is an example of a role that, even when filled by a lawyer, frequently involves both legal and non-legal work. “Attorneys can be hired in a myriad of roles not requiring their status as attorneys,” says Richard T. Seymour, former chair of the ABA Section of Labor and Employment […]

What is medical payments coverage? One of the questions we often hear is regarding the medical payments coverage on a law firm’s general liability policy. Many firms wonder what it covers and how it works. The medical payments coverage referenced in your business’ commercial general liability policy can best be compared to the med-pay coverage […]

Flood Insurance Versus Water Damage Is it covered by flood insurance or is it water damage covered by property insurance? Over the past year, we saw how many storms devastated many parts of the country, flooding homes and businesses, destroying roads, and ruining many lives. From those storms, we received many calls about how insurance […]

General Liability Basics Law firms are growing at a tremendous rate, and we have been able to work with many of them in implementing their first insurance policy. In setting up a firm’s first insurance program, general liability insurance is the most basic and primary coverage.  Just because it’s the essential coverage doesn’t mean it […]

Preventing Crime Preventing crime does not need to take up a lot of your time, nor should it cost money.  You must take the time to proactively institute sound policies with your employees and some protective measures throughout your law firm. Crime is a serious threat to any business, and law firms have not been […]

Boiler and Machinery Insurance Boiler and Machinery Insurance is an often overlooked insurance that can help protect your law firm from potential insurance claims. To help provide some insight into what Boiler and Machinery Insurance are, we have compiled a list of the most common questions associated with the coverage. What is Boiler and Machinery […]

Blanket Insurance One of the recommendations we usually make to law firms with more than one location is for them to add blanket coverage to their property insurance. As many law firms don’t have this coverage or know what it is, we thought we would provide some insight on how this coverage can help your […]

Litigation-related Claims Litigation errors breed the largest number of malpractice claims reported each year.  In recent years, errors arising out of litigation accounted for nearly 36% of all reported claims. In the vast majority of cases, the statute of limitation on the client’s case expired and there was nothing left to do but assess the […]

Occurrence vs. Claims-made Form Most insurance policies for law firms consist of two coverage forms that determine how the policy will respond to a claim: occurrence form and claims-made form.   We want to spend the next two posts explaining these two forms and how they can affect your law firm in the event of […]

What is coinsurance? A common but seldom understood provision in a property insurance policy is coinsurance.   We have found that many law firms don’t know what coinsurance is and how it affects their insurance policy. Coinsurance is a “penalty” from insurance companies for underinsuring property.   Only 2% of property losses are total losses, while 86% […]

Storage Unit Insurance One of the questions we receive from a number of the law firm we work with is about properly insuring items inside a storage unit.   Many firms will have excess property they don’t want to keep on campus, so they will typically keep it in a storage unit for a temporary or […]

Employee-owned Auto Coverage Why do I need auto coverage if my law firm doesn’t own any vehicles? We get asked this question frequently, so I want to clarify some confusion surrounding this coverage. There are scenarios where a law firm must have auto coverage to properly cover a claim even if they don’t own any […]

Fidelity Insurance for Law Firms Many law firms need fidelity insurance to protect your firm from potential financial risks.   Many of these insurance policies are actually written in the form of a bond.   This post will explain the different types of bonds available and provide some insight into whether or not your law […]

Cyber Liability Protection Cyber Liability protection is a coverage that is becoming more and more important, but very few people understand what the coverage actually is and how it can protect your law firm.   With that in mind, we have put together a quick summary of the standard coverages included in this type of […]

Slips, trips, and falls are one of the biggest claim risks that law firms face.  In fact, according to the National Safety Council, there are more than 25,000 slips and falls EVERY DAY in the United States, and they account for over 16,000 deaths every year.  Firms with considerable foot traffic need to be especially […]

Laptop Security Part 2 One of the biggest risks for law firms is the lost or stolen data through employees’ laptops.  Last week, we discussed five items that will help prevent your data from being stolen.  This week we want to present the remaining five items. 6. Protect yourself from other users Connect your laptop […]

Laptop Security Part 1 Traveling with a laptop can represent a significant security risk to your law firm. This is because the data it contains is far more vulnerable when you are on the move than when you use a laptop in the relative safety of your office environment. It doesn’t have to be stolen; […]

Equipment Breakdown Insurance When equipment is working, we take it for granted. But when something breaks down, things can quickly grind to a stop.For example: A power surge could damage your computer network. Your electrical system could short circuit, causing your business to shut down temporarily. An employee error might damage your only production machine. […]

What is directors and officers liability insurance? Directors and officers liability insurance protects past, present and future directors and officers of for-profit or nonprofit companies from damages resulting from alleged or actual wrongful acts they may have committed in their positions. The policy provides protection in the event of any actual or alleged error, misstatement, […]

Why is forgery insurance needed as part of your crime insurance? According to the National Check Fraud Center, check fraud and counterfeiting are among the fastest-growing problems affecting the nation’s financial system, producing estimated annual losses of $10 billion, and losses continue to rise at an alarming rate annually. Forgery insurance or alteration coverage protects […]

Experience Mod Explained An experience mod commonly called an “e-mod,” is an important factor used to adjust your workers’ compensation premium. What is an experience modification factor? An experience modifier (e-mod) is a multiplier applied to the premium of a qualifying policy and provides an incentive for loss prevention. The e-mod represents either a credit […]

EPLI Insurance Overview Did you know that studies show that 1 out every 10 law firms will face some employee-related litigation?  Because of this, we recommend that all firms purchase Employment Practice Liability Insurance (EPLI).  EPLI Insurance protects your firm from the following types of claims scenarios: Sexual Harassment Wrongful Termination Age Discrimination Racial Discrimination […]

Return-to-work Program Benefits Benefits of an effective early return-to-work program accrue to both a law firm and its injured employees. The law firm realizes significant cost savings by minimizing lost productivity, resource replacement costs, workers’ compensation indemnity benefits, and medical treatment costs. The employee benefits from reduced stress and a feeling that their employer cares […]

Non-owned and Hired Auto Insurance Does your law firm need non-owned and hired auto insurance? Does your law firm have potential automobile loss exposures that you are not aware of?  What about the potential loss from individual employees who operate their own personal vehicles for company business? Many situations present a potential for you to […]

Workers Compensation Exclusions for Law Firms Every law firm should be aware of their policy’s workers compensation exclusions. The key idea behind workers’ compensation laws is that a non-exempt employer provides a benefit to cover all on-the-job injuries, regardless of what they are, without determining fault. The real limits of the law come not in […]

General Liability Insurance Overview for Law Firms General liability insurance coverage is something most law firms simply must-have, so it is essential that you understand what it does and doesn’t cover. Coverage What’s typically protected by commercial liability insurance coverage Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. […]

Claim Scenario: Age Discrimination Though not common, law firms can do encounter age discrimination lawsuits. Every few months, we like to share information on various claims experienced by different firms.  While the names and personal information have been removed, the claims are genuine and important to note. TUV Law Firm terminated a long-time office manager […]

General Liability Medical Expenses Every general liability policy includes a medical expenses section. What exactly does this section cover? As it has been established, general liability coverage is when a third-party claims you or your law firm was negligent for bodily injury or property damage and sues for those damages. General liability protects your law […]

Overuse injuries are one of the biggest risks law firms face in regards to workers’ compensation injuries.  The following is a list of basic ergonomic tips to avoid overuse injuries: Keyboards Place the keyboard in a position that allows the forearms to be close to the horizontal and the wrists straight. That is, with the […]

What does crime and fidelity insurance cover for law firms? Crime and Fidelity Insurance protects law firms from loss of money, securities, or inventory resulting from the crime. Common insurance claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts. These schemes involve every possible angle, […]

What is employee benefits liability? Employee benefits liability might be one of the most important coverages your law firm didn’t realize it needs to have. Like many employers, your firm may offer employee benefits like health insurance or vision care. Such benefits can help your company compete for qualified workers. Unfortunately, they can also lead […]

Law Firm Claim Scenario: Disclosure of Private Information Here’s an example of a law firm that accidentally had a disclosure of private information. We hope this claim example can help your practice avoid potential problems in the future by providing the details around the claim.  The following claim is related to a cyber liability insurance […]

What is personal and advertising injury coverage? Included on every general liability insurance policy for law firms is a coverage entitled “Personal and Advertising Injury.”  The problem is that very few people understand what this coverage is and how it can protect your company. Personal and Advertising Injury is Limited in Scope First, Personal and Advertising […]

Claim Scenario: Workers Comp. Benefits Awarded for Stress In a recent ruling, an employee was awarded workers comp benefits for stress. We want to share claim scenario details and court rulings as it could affect your law firm’s insurance.  The following is a recently issued ruling on work comp. A policy that awarded benefits to […]

What is employee dishonesty insurance coverage? Employee dishonesty insurance can be one of the most important coverages firms can purchase. Why? Fraud and embezzlement instigated by employees are on the rise in the small business workplace. According, Small businesses are especially vulnerable, especially those who cannot absorb large losses or cannot afford extensive precautions and […]

What is valuable papers and records coverage? Many law firms don’t realize that valuable papers and records coverage may be vital to your firm’s business operations. You may be relying less and less on hard copies of your valuable papers and records and transitioning to electronic filing instead. Even so, your hard copies still need […]

Umbrella Liability Insurance – 5 Things to Know An umbrella liability policy provides an insured with an “umbrella” of liability protection over the primary liability insurance. Most umbrella insurers require you to purchase primary insurance coverage before selling you an umbrella policy, such as general liability insurance, auto liability insurance, workers compensation, or employer liability […]

Cyber Security Tips for Law Firms Cyber security is becoming increasingly important as more and more businesses are attacked every day. Law firms aren’t immune so it’s important to protect your practice with insurance and proper company policies. Broadband and information technology are powerful tools for small businesses to reach new markets and increase sales […]

What is EDP insurance coverage? So many law firms are computer-dependent, and EDP insurance coverage is a necessity. Rather than insuring the computers as pieces of office or manufacturing equipment, the Electronic Data Processing (EDP) form responds to the need to protect hardware, software, media, and other exposures unique to this equipment. Coverage is available […]

Law Firm First Aid Basics First aid is important emergency care administered by trained individuals for an injury or sudden illness before emergency medical treatment is available. All injuries should be treated since seemingly unimportant ones, i.e., splinters or puncture wounds can result in infection. Proper first aid can also help your law firm prevent […]

Insurance Defense Costs It’s important to understand how the defense costs work on your insurance policy because it can dramatically impact how claims are paid. Did you know that a liability policy, part of any typical business insurance policy or commercial insurance coverage, has two distinct obligations? If it is general liability, product liability, or […]

Common Workers Compensation Questions for Law Firms If you are looking to start a new law firm, you might have some workers compensation questions. Is it needed? How does the audit work? How can I minimize premiums?  Below we have put together a summary of the top worker’s compensation questions and a brief answer to […]

Employee or Independent Contractor There are times when a law firm needs to hire an independent contractor. So how do you know if they should be covered on your workers compensation insurance policy? Under the Workers’ Compensation Law, most individuals providing services to a for-profit business will be deemed employees of that business. The employer […]

Employee Theft & Employee Dishonesty is something that every law firm should be aware of. Your employees’ things may negatively affect your revenue or cause losses due to theft of money, securities, or property. This workplace crime also includes burglary and destruction. Here are five things you can do to protect your business from potential […]

General Liability Supplemental Payments Most liability insurance policies have clauses dealing with supplemental payments: the standard business auto policy, personal auto policy, and general liability policy all contain supplemental payments sections. The first provision in the supplemental payments clauses states that the insurer will pay the expenses it incurs. This seems reasonable since the insurer […]

Avoiding Malpractice Claims through Time Management Missed deadlines and time management-related errors are the second biggest cause of malpractice claims at all firms’ sizes.  Over the last decade, they have represented over 17 percent of all malpractice claims. The most common time-related error is a failure to know or ascertain a deadline – missing a limitation […]

Settle and Sue Trend A recent trend within the legal industry is the “settle and sue” lawsuit.   A plaintiff in this type of legal-malpractice action is unhappy with settling a prior lawsuit even after the plaintiff voluntarily agreed to settle the case. In classic buyer’s remorse mode, disgruntled clients regret deciding to settle and focus their […]

Avoiding Bad Clients Bad clients can make you question your skills, destroy your reputation, and result in the worst money you have ever made.  Learning how to spot and avoid them can be the best decision you ever make. All Clients Are Created Equal, Right? No. Bad clients have an amazing way of sapping time and […]

Coverage Denial Due to Colleague’s Misrepresentations About the only thing worse than getting slapped with a malpractice suit is learning that your firm is not covered despite the professional’s belief that insurance was in place.  Consider the possibility that one of your colleagues’ actions could result in a firm-wide declination of coverage— a scary thought. […]

After being served with a malpractice action, attorneys will often mutter, “I knew·I shouldn’t have taken on that client.” These “problem” clients are often the result of ineffective client screening. Successful practitioners augment their “gut feelings” with standardized office-wide screening procedures. A firm-wide policy of screening each prospective client according to a predetermined set of standards […]

Today, most law firms live in two worlds – the world of paper client files and electronic client files.  The big issue now is how to properly conserve each file type to ensure you keep proper documentation. Paper vs. Electronic Records There is no distinction between paper and electronic record retention; the same retention period […]

Hired one thing, but then sued for another? It may be a more common problem than you think.  In a recent decision, an appellate court held that an attorney tasked with a seemingly simple and defined engagement might actually be on the hook for much more. This serves as an important reminder to effectively communicate […]

It should be no surprise that attorney/client communication errors are the leading cause of malpractice claims.  In fact, over the last decade, more than one-third of malpractice claims are caused by some communication error. There are three types of communication-related errors. The most common is a failure to follow the client’s instructions. Often these claims arise […]

Law firms are being targeted more and more for cyber attacks, as was evidenced by a recent attack on 50 prestigious law firms targeted by Russian hackers.  The targeted firms tended to be transactionally oriented; the hackers’ apparent plan was to obtain confidential, market-moving information and trade on it. To help keep your firm safe, […]

Lawyers wear many hats; the key is not to wear them all simultaneously.   Many lawyers are well versed in areas outside of the law and can be sources of non-legal knowledge for clients.  However, lawyers need to be mindful when their services extend beyond the traditional landscape of legal advice.  Mixing business interests and legal […]

Although it is uncommon to ignore legal precedent, it does happen from time to time when it is outdated, no longer applicable or due to the political/philosophical makeup of the presiding judiciary. Also, new laws can create problems for attorneys.  When the law is clear, an attorney’s obligations are clear – he or she must […]

The Model Rules of Professional Conduct prevent lawyers from representing conflicting clients.  A conflict of interest may arise when the representation of one client is directly adverse to another client.  Just how far the requirement of “directly adverse” may extend was recently addressed by the Massachusetts Supreme Court in an interesting case involving IP litigation. While one […]

It is not uncommon for lawyers to have different associations with a particular firm. For example, the term “of counsel” is often used to designate a role different from the traditional partner or associate positions.   This may beg the question of what level of involvement an attorney must have to be “associated with” a particular […]

If you’re a good lawyer, you won’t get sued for malpractice, right?  This belief may be comforting, but it’s a myth. Good (and bad) lawyers get sued. There is no simple way to predict if your client will sue you for malpractice. In order to prepare for the likelihood of malpractice claims, it is necessary […]

Knowing the applicable statute of limitations for your case is critical for every attorney.  In the world of legal malpractice, there are many variables in play: the jurisdiction, the facts, tolling and the extent of the underlying representation. Therefore, it’s important for attorneys to know the various nuances of the statute of limitations doctrine in […]

Prudent professionals maintain different types of insurance to protect against various risks. Some typical policies for professionals may include D&O, cyber, and/or E&O policies. The foregoing policies and others may overlap, while others allow gaps for claims that would not be covered. It is incumbent upon each professional to purchase the perfect mix applicable to […]

Ugh…deadlines. Many classes of professionals are bound by deadlines. Attorneys are no different. Pleading requirements, discovery responses, motions, hearings and other proceedings must all be calendared to ensure that an attorney meets all deadlines. In fact, an easy path to malpractice is to miss a deadline. A recent New Jersey verdict highlights the importance of […]

If someone gets to your information in a disposed piece of equipment, it could get really ugly really fast.  Even worse, there is a good chance the State Bar will consider this an ethics violation for failure to take proper precautions to protect client confidentiality. Malpractice claims are likely to follow suit. There are several […]

Did you know that approximately 55,000 attorneys will face an allegation of Professional Liability this year?   As professional liability is our speciality, we thought we would share some insight into professional liability litigation and where your firm can help prevent it. Litigation Statistics More than 70 percent of reported claims arise from firms with […]

Moonlighting is the practice of working for more than one employer or working for yourself while working for an employer.  Attorneys who moonlight may be asking for trouble. Many employers have policies forbidding the practice, some going so far as to deem it grounds for immediate termination. A recent case provides an extreme example of […]

In many state, privity is required in order to maintain a legal malpractice claim. In other words, the claim must be client v. former attorney “absent special circumstances.” But under what special circumstances would a court be inclined to find legal malpractice in a non-privity situation?  A case this past week shed some light on […]

The engagement letter is a critical tool for setting expectations, managing risks, and deterring malpractice.  Unfortunately, in a recent case out of New York, the court found the engagement letter did not sufficiently limit the risk to the professional in order to avoid the malpractice claim. In the case, a bank retained its accountants to […]

The professional-client relationship often begins with a retainer agreement/engagement letter: a contract that defines the terms and scope of professional services. Accordingly, when a client files suit alleging professional malpractice, the claims will generally sound in both contract and tort.  Whether a claim is asserted as a breach of contract or tort can have important implications with […]

Unfortunately, there is no simple way to predict if your client will sue you for malpractice. In order to prepare for the likelihood of malpractice claims, it is necessary to actively engage in risk management. Risk management involves the use of a comprehensive risk management policy. New Clients Risk management begins as soon as a person […]

Many professionals are bound by a code of professional conduct.  Sure, we have to play by the rules but those rules may require that we ensure others do as well. In a recent opinion, the Supreme Court of Ohio Board of Professional Conduct considered the circumstances in which an attorney is required to report rule violations by others.  […]

Attorneys depend on third-party email services to operate their business.  As a result, they may assume vendors are safeguarding their electronic information and therefore the professional is not exposed. False. Consider an attorney sued recently for malpractice arising from an e-mail hacking scam. A New York real estate attorney‘s e-mail account was hacked recently. The attorney […]

If you’re a good lawyer, you won’t get sued for malpractice, right?  This belief may be comforting, but it’s a myth. Good (and bad) lawyers get sued. There is no simple way to predict if your client will sue you for malpractice. In order to prepare for the likelihood of malpractice claims, it is necessary […]

Attorneys are often approached by friends and family for advice.   At times, the particular issue might not fall squarely within their area of expertise or may involve a matter outside of the jurisdiction in which they are licensed to practice. In a recent decision, the Minnesota Supreme Court took a Colorado attorney to task for the […]

Over the past few years law firms have seen a dramatic rise in employee lawsuits against their firm for claims like harassment, age discrimination, failure to promote, unlawful termination, and racial discrimination. In fact, according to the EEOC, almost 100,000 discrimination claims were filed by employees last year. Before a claimant can press a discrimination […]

Missed deadlines and time management-related errors are the second biggest cause of malpractice claims at all sizes of firms.  Over the last decade, they have represented over 17 percent of all malpractice claims. The most common time-related error is a failure to know or ascertain a deadline – missing a limitation period because you didn’t know […]

A recent trend within the legal industry is the “settle and sue” lawsuit.   A plaintiff in this type of legal-malpractice action is unhappy with settling a prior lawsuit even after the plaintiff voluntarily agreed to settle the case. In classic buyer’s remorse mode, disgruntled clients regret the decision to settle and focus their litigation crosshairs on […]

It should come as no surprise that attorney/client communication errors are the leading cause of malpractice claims.  In fact, over the last decade more than one-third of malpractice claims are caused by some sort of communication error. There are three types of communication-related errors. The most common is a failure to follow the client’s instructions. Often […]

Bad clients can make you question your skills, destroy your reputation, and result in the worst money you have ever made.  Learning how to spot and avoid them can be the best decision you ever make. All Clients Are Created Equal, Right? No. Bad clients have an amazing way of sapping time and energy in ways […]

About the only thing worse than getting slapped with a malpractice suit is learning that your firm is not covered despite the professional’s belief that insurance was in place.  Consider the possibility that the actions of one of your colleagues could result in a firm-wide declination of coverage.  A scary thought. A recent decision demonstrates […]

Although it is uncommon to ignore legal precedent, it does happen from time to time when it is outdated, no longer applicable or due to the political/philosophical makeup of the presiding judiciary. Also, new laws can create problems for attorneys.  When the law is clear, an attorney’s obligations are clear – he or she must […]

After being served with a malpractice action, attorneys will often mutter, “I knew·I shouldn’t have taken on that client.” These “problem” clients are often the result of ineffective client screening. Successful practitioners augment their “gut feelings” with standardized office-wide screening procedures. A firm-wide policy of screening each prospective client according to a predetermined set of […]

Most law firms today live in two worlds – the world of paper client files and the world of electronic client files.  The big issue now is how to properly conserve each file type to ensure you keep proper documentation. Paper vs. Electronic Records As far as your obligation to clients, there is no distinction […]

Hired one thing, but then sued for another? It may be a more common problem than you think.  In a recent decision, an appellate court held that an attorney tasked with a seemingly simple and defined engagement, may actually be on the hook for much more. This serves as an important reminder to effectively communicate […]

Law firms are being targeted more and more for cyber attacks.  As was evidenced by a recent attack on 50 prestigious law firms targeted by Russian hackers.  The targeted firms tended to be transactionally oriented; the apparent plan of the hackers was to obtain confidential, market-moving information and trade on it. To help keep you […]

Lawyers wear many hats; the key is not to wear them all simultaneously.   Many lawyers are well versed in areas outside of the law and can be a source of non-legal knowledge for clients.  However, lawyers need to be mindful when their services extend beyond the traditional landscape of legal advice.  Mixing business interests and […]