When considering Professional Indemnity claims it is often worth looking back at the root of where the issues first arose.
What can become clear is that many claims could have been avoided if the client selection process at the firm was more robust. In an uncertain political and economic landscape it is understandable that solicitors will seek to welcome new clients or generate more inquiries from existing clients in new areas to help ensure positive turnover for the firm.
However, there is risk involved in accepting instructions from both new and existing clients and, if the firm’s risk management procedures are not strong enough, what is usually seen as beneficial in the short term (more revenue and potentially a new long-standing relationship with a client that brings repeat business) is potentially detrimental in the long term.
In this article, we will look at the factors fee earners should consider before acting on a piece of work to ensure they keep their business shielded from a professional negligence claim.