Here is an uncomfortable topic for lawyers or in fact any professionals

Professional liability, lawyer stuff ups, professional indemnity insurance claims and the tenuous process of fighting these claims…

It doesn’t matter what profession you’re in, if you stuff up and cause a loss you’ve got problems.

It’s not just loss. It’s reputational. Time consuming and is a shot to the core of your professionalism.

Not to mention the years of explaining the claim to future insurers on those dreaded proposal forms…adding attached sheets to explain. Those who know - know!

I specialise in professional liability and I’m never far from looking at a professional indemnity insurance policy because the key question is - how to recover?

But for the professional the claims are all about the stress, the sleepless nights and the unknown.

But let me PLEASE let you in on a secret, from a professional liability lawyer to any professional…

What motivates these clients might surprise you…it is often not all about the loss!

Sure that is the substance and reason for the proceedings.

But if it’s not the loss - what?

Deep down, I think we all know what it is…what motivates claimants - it’s a deep desire to pursue the professional.

Just that?

Well yes, it’s often more than just the money that motivates people to put up their hard earned, enter the uncertain, it can take a lot, but it’s often clear to claimants, they know exactly who they want to pursue and why!

In fact, I’m often surprised how motivated, and how frustrated a claimant can be.

And often it is not about the firm or business per se. It’s personal.

This might actually seem obvious but claimants like professionals are obviously human and motivated by both rational and irrational factors - subjective factors, some perceived wrongdoing or just some downright dissatisfaction with someone.

Sure, I’m a lawyer, I need to look closely at the facts, cause of action and if there’s a proper basis loss we will pursue the case.

So, what is my point?

The subtle point I want to make is that your rapport, relationship with your client, is absolutely everything. Even when things go south- in fact most importantly then - your relationship may be the key thing to avoid a claim.

Remember that, especially when they haven’t paid your bill, they’ve complained to you or some point is pressed.

I urge - a small positive gesture, an open ear, even if you think it is not deserved. Empathy can often be the difference to a tipping point.

For professionals of any type. The chances of being sued in the modern Australian legal environment really have never been higher. I work on both sides of the fence for plaintiffs and defendant, and I emphasise this:

Even when your relationship goes sour, stay positive, work through the tough stuff. Why? because in my 25 years and more of legal and professional liability I’d say professionalism is the most important legal risk management plan!

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• professional liability