The New US Economy has created more legal professional liability exposures than you may be aware of.

According to the Bureau of Labor Statistics, more than 25,000 legal services jobs have been lost since August of 2008. A displacement of this magnitude has created an employment ripple throughout the legal industry felt from the largest international firms down to small-town practices.

The new US economy hasn’t only effected employment. With revenue falling across industry practices ,competition between firms has become very aggressive. Firms are starting to take on new practices they have little to no expertise in, in an effort to increase top line production.

Technology has also played a role in the recent spike of professional liability claims. Legal firms have taken to the Internet. Electronic communication (e-mail), filing (online data warehouses), mobile technology (blackberry), and social media advertising have all generated a form of liability, Cyber Liability.

What can Lawyer’s do to protect themselves?

Be prudent when purchasing insurance coverage. Cheaper is NOT, repeat NOT better when it comes to procuring Professional Liability for a Legal firm. The exposures are vast and the language in Legal Industry insurance contracts can often be vague. Make sure the you work with an insurance professional with experience in the legal industry. Additionally, be upfront and honest with everything that your firm does. Things you must disclose to your insurance professional:

All law practice lines (including pro-bono)
- Communication methods
- Advertisements
- Data storage
- Publishing (written articles for mags, online, newsletters)
- Employment practices.

Lawyers beware, professional liability claims can arise from any action in which you act in a professional capacity. How often do Lawyers act in a professional capacity? This is a coverage you may want to take seriously.

For more from Ryan, please visit http://www.ryanhanley.com/

Thank you,

Ryan H.