Ethics CLE: “How to Stay in the Good Graces of Your Malpractice Carrier,” with Jaimee Reed
As part of LawBank’s CLE offerings, Jaimee Reed presented to the solo and small law firm community, providing insight into how to avoid a malpractice blunder and discussing real-life examples relating to various ethics rules. Jaimee is the owner and president of Cairn Insurance Services, Inc. She is a LawBank vendor whose business focuses on malpractice insurance for independent law firms.
This lunchtime program, which took place on November 30, 2020, focused on best practices to avoid malpractice claims. Jaimee first discussed cyber issues. She advised that no matter how small your firm is, it is not a matter of “if” a cyber issue will occur, but rather, “when.” Jaimee shared that there are common ways that hackers are able to trick lawyers into changing wire instructions. She also provided a real-life example of how a boss’s email instructing an associate to buy gift cards was part of a common cyber scam. These types of cybercrimes can be labeled as “social engineering.” A large amount of the claims Jaimee sees fall under this category. Next, Jaimee covered potential reasons for being non-renewed by an LPL carrier. She encourages attorneys to always review the work of their associates, contractors and co-counsel. She stated that the best course of action is to start by hiring the right people, especially because high turnover negatively impacts a malpractice premium.
Jaimee typically advises lawyers to minimize “dabbling,” as carriers often see this as a negative. She recommends that attorneys stick to cases within their area of expertise unless they have a trusted mentor. Her best practice is to remember that if it is something you know nothing about, refer it out. Another situation to approach with careful consideration is relationships with clients. While lawyers are allowed to have relationships with clients, the relationships must have been established prior to representation, otherwise there is a high risk of a malpractice claim. Jaimee concluded her presentation by discussing bar complaints and the fact that they often stem from a conflicts issue. Her advice for dealing with conflicts is to do your best to get rid of it, and if you cannot get rid of it then make sure you document it. Jaimee explained how she has seen an increase in claims during COVID-19. Many people are suffering from financial struggles and don’t have the money to pay legal fees. Often times, a lawyer will send them to collections, only to have the client retaliate by claiming malpractice. This can be avoided by consulting your malpractice agent before suing the client for fees. When suing clients for fees, there is a 25% chance of ending up with a malpractice claim, which will reflect negatively on your premium. Jaimee assured that there are a variety of ways around this. She recommends collecting higher retainers, establishing a flat-fee arrangement, offering payment plans or enlisting the help of your malpractice carrier to discuss other options.
If you would like to view upcoming programs hosted by LawBank, visit the events page.
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