From our friends at NW Sidebar, seven steps you should take now to get your 2020 financials organized:
It’s that time again! Not just for holidays and eggnog, but also taxes, 1099s, and other year-end financial must-dos. And after the year we’ve had – what with PPP loans and unplanned expenses – the process will be more complicated than ever. If we set aside just a few minutes to organize our year-end now, we’ll find ourselves much less stressed when the new year and tax deadlines roll around. This practical, step-by-step guide will set you and your firm up for a year-end win and success in 2021.
Approximately every four years since 1985, the American Bar Association has published a “Profile of Legal Malpractice Claims.” Plaintiffs’ personal injury and family law are the most frequent source of claims, according to the latest profile. Although the Profile does not correlate the severity of claims by practice area, the Profile’s “anecdotal observations” section suggests that business and commercial law have traditionally been higher-risk areas on this score…
In 2019, the most recent year for which data is available, personal injury, domestic relations, and bankruptcy/debtor-creditor law top the list for frequency of claims in our state. They do not, however, represent the biggest payout. In fact, they don’t make the list.
If your concern is cost, look to business transactions, securities, other civil litigation, tax/non profit law, intellectual property, and construction.
Here are the details:
Don’t become a statistic
The risk of a legal malpractice claim can be greatly reduced by taking advantage of practice management resources. HOW you run your practice matters as much – or more – than the area of law you choose. Reading blogs, getting advice, and scheduling a webinar are all ways to educate yourself on malpractice traps.
Learning to manage your workflow and properly track deadlines is a must. So is managing your time. Reach out if you need help or have questions. Take advantage of PLF and OAAP resources. Getting your systems and procedures in order is the single most effective step any lawyer can take to manage the risk of a claim. This applies to those practicing in larger firms too. Your firm supplies the software and procedures, but when it comes down to managing your personal caseload that’s up to you.
Professional liability policies for lawyers and law firms often distinguish between disciplinary and malpractice defense. Some don’t cover disciplinary defense or, if they do, include a much lower coverage limit. A recent decision from the U.S. District Court for the Western District of Washington underscored the practical impact of the distinction between disciplinary and malpractice coverage.
Chochrane v. American Guarantee & Liability InsuranceCompany, 2020 WL 3798928 (W.D. Wash. July 7, 2020) (unpublished), was a coverage action by a lawyer against her carrier. The lawyer’s professional liability policy included coverage for disciplinary matters—but the limit was only $10,000. A grievance had been filed against the lawyer. No separate litigation for malpractice, however, was involved. Although the disciplinary matter was eventually dismissed, the lawyer incurred substantially more than the $10,000 limit in fees and costs in her defense. Because a part of the grievance included allegations of malpractice, the lawyer argued that her carrier should cover the expenses above the $10,000 limit. The carrier declined and the lawyer brought a coverage case against the carrier.
A recent report by Clio assessing the impacts of the coronavirus on the legal industry and consumers found that the virus has created a 40 percent drop in the number of new legal matters opened per week. Almost half of the polled consumers said that if they had a legal issue, they would delay seeking legal help until after the virus subsided. Further, 22 percent of consumers indicated they were under the impression that attorneys stopped working altogether because of COVID-19.
Be open to limited scope representation, aka unbundling.
Update your marketing. Specifically your website, blog, social media accounts, and whitepapers as suggested in the post. Get the word out that you are open for business and include a COVID-19 statement.
Working remotely increases the probability of problems created by malware and ransomware, and the damage caused by them can be extreme. Take these 9 basic steps to protect yourself.
Backup your computer
Update and patch operating systems and apps
Manage accounts with security in mind. Avoid logging in as an Admin unless necessary.
Install anti-malware software
Establish a VPN (virtual private network) to connect to your office computer
Oregon Law Practice Management 