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THURSDAY, MAY 8, 2014

How Lawyers Can Reduce Their Professional Liability Risks

Pen and PaperLawyers face a variety of professional liability risks when they advise clients and handle their paperwork. One documentation error, miscommunication or a failure to inform the client of changes can result not only in an unsatisfied client, but also a professional liability lawsuit targeted at your firm. Whether grounded or frivolous, these charges can quickly add up to exceed hundreds of thousands of dollars, which is enough to rock the financial bedrock of a law firm.

There are methods you can employ to minimize your firm's risks. Though the risks can never vanish permanently, following these tips can help protect your law firm's integrity for years to come.
  • Standardized documentation: Whenever possible, use standardized forms rather than your own versions. This includes contracts, disclosure forms, agreements etc.
  • Peer review: All documents should be reviewed by at least two associates before they are signed to scan for errors.
  • Keep records: Maintain records of all documents, emails, memos, meeting notes etc. that are related to client transactions in case you need to build your own defense later.
  • Familiar territory: Only advise clients on topics you are familiar with. If you are unsure of something, do your research before offering any advice. You can be held liable for the negative results of a client following poor advice.
  • Continue learning: Laws and regulations are continuously evolving. Staying abreast of the changes not only helps you help your clients, but also keeps your firm out of hot water by following all the rules.
  • Hire the best: Hire a skilled team of experienced lawyers so your firm can offer the best value to clients. Each associate should be fully educated and licensed. You may also choose to hire a lawyer solely for risk management purposes.
Law firms need just as much protection as those they defend.

For additional information regarding California Lawyers professional Liability Insurance, please contact:

Northern California: Jeff Schmidt jschmidt@dealeyrenton.com (510) 272-1477
Southern California: Spenser Lauro  slauro@dealeyrenton.com (714) 427-3910
Posted 9:00 AM

Tags: professional liability, paperwork, minimizing risk, california lawyers professional liability insurance
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