James Kerr, head of professional indemnity at Travelers, introduces the Avoiding claims. Insurance section. (2 January 2020)
Mistakes happen, in law firms like anywhere else. Work piles up. Deadlines arrive. Issues are complex. Key risks get overlooked.
In this helpful set of articles on how to avoid negligence claims, the team at Travelers reveal the most common areas of risk to watch out for. The advice is brought to life by all the real-life examples they have included. Most importantly, they suggest ways to organise your work to minimise the risk – and the stress – that is part and parcel of all legal work.
Residential conveyancing generates more negligence claims, at more cost, than any other work area.
Commercial conveyancing comes second, with leases and assignments being particular problem areas.
Company and commercial ranks third in terms of the value of the claims, although only sixth in the Travelers data showing volumes of claims. When contracts fail to protect a client the financial damage can be extensive.
Wills, trusts and probate work ranks fourth in terms of value and third in volume. Tax errors can be expensive.
Commercial litigation ranks fifth in value and fourth in volume. Errors and omissions occur during the day-to-day legal work.
Furthermore, we have included a small set of FAQs on professional indemnity insurance, explaining how much you need, how to keep your costs down, and what to do if you face a claim.
Lastly, we are creating a set of ten-minute podcasts on our new YouTube channel. The first one to be released is an introduction to the whole issue of risk for law firms.