Blog

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 […]