Risk Management Practices

There are several basic risk management practices that we recommend for every lawyer. These recommendations are based on practical experience and caselaw.

1. Malpractice Insurance. Although it is not required in Illinois, you should obtain legal malpractice insurance. Failing to obtain it is potentially disastrous. Insurers will appoint defense counsel. Many insurance policies also provide coverage for any attorney grievances. In other words, the carrier will appoint counsel to defend you from any client grievances.
2. Record Keeping – Maintain orderly client files and communications with clients. Keeping good records can be the difference between winning your legal malpractice case and losing it. In particular, keep written records of client decisions, especially when the client makes a bad decision. Keep notes of important phone calls.
3. Don’t Lose your temper. If you lose your temper, you will inevitably make bad decisions and make your life miserable.
4. Use engagement letters. They provide protection from claims that might come out of left field.
5. Document all rate increases. Put in the engagement letter that your rates increase on an annual basis.
6. Follow all rules on holding client funds separate in a trust account.