Law firms load up on insurance to combat expensive claims
Today’s Wall Street Journal features an article suggesting that the increase in lawsuits against law firms is directly related to the economy. It points out that, in recent years, not only has there been an increase in suits being brought by clients, but that suits are coming from internal sources as well. Suits alleging employment discrimination and firm mismanagement are on the rise as law firms undertake measures to increase profitability.
Professional Liability, Employment Practices Liability and Management Liability are all areas where law firms find themselves exposed. Most firms purchase at least one of these valuable insurance coverages. Given the current climate, as pointed out in the afore-mentioned article, we would suggest that firms look seriously at each and give careful consideration to employing such transfer mechanisms.
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Having the proper cover in place at the time a suit is brought can significantly protect the balance sheet of the firm as well as the personal assets of its partners. Contact WGA’s Professional Service Practice to learn more.
About the Author
Lynne Ahearn is Senior Vice President at WGA, working with clients to provide innovative risk management and insurance advice to the Professional Services sector.