Professional Liability Matters

LATEST INSIGHTS

May 1, 2013 • Insurance Products, Professional Liability Matters, Risk Management

Lawsuits Targeting America’s Wealthiest

A high percentage of the wealthiest Americans believe that they are more likely to be the subject of a lawsuit today than they were before the financial crisis. The issue of disparity of wealth, income and taxation has intensified these fears that their wealth can attract lawsuits. These concerns are reportedly legitimate, because under the widely accepted doctrine of joint and several liability, if more than one defendant is responsible for a plaintiff’s injury, any of the defendants may be held responsible for the entire damage award. The result is that the plaintiff may focus the attack on the deepest pocket. Much of this analysis may not come as a surprise but people of means frequently underestimate the potential cost of a lawsuit and misunderstand the affordability of effective protection.

April 30, 2013 • Ethics, Professional Liability Matters

Recent Decision: It’s Okay to Reach Your Next Client Via Text?

Marketing is a must for all professionals. The quality of a professional’s skills may be wasted unless marketed to, and utilized by, would-be clients. Thus, professionals strive for efficiency in targeting an audience but those efforts are tempered by ethical considerations in advertising. However, solicitation just got considerably easier for attorneys in Ohio who may now reach potential clients via text.

April 29, 2013 • Cyber-Liability, Professional Liability Matters

You’ve Just Been Hacked, Now What?

All professionals utilize computers in the workplace. These devices are a must for providing professional services, meeting customer needs, marketing, billing functions and countless other tools available to professionals through the use of computer equipment. Make no mistake, however, the very equipment that is so crucial to your business is under cyber-attack and is constantly at risk of a virus or hack. Yet, inexplicably, 25% of all computers worldwide are not adequately protected. Professionals cannot afford to be a victim of cyber-liability.

April 25, 2013 • Professional Liability Matters, Risk Management

When in Doubt Report, Report, Report…

It’s bound to happen…professionals make mistakes. Some of those mistakes may lead to a professional malpractice claim while others may go unnoticed, never to be heard of again. Given that most professionals cannot predict the future nor speak for their clients, professionals must timely report each mistake to her malpractice carrier pursuant to the applicable reporting deadlines because the policy may require it. Even those mistakes that seem inconsequential must be reported. The risks of failing to do so can prove to be costly.

April 24, 2013 • Medical Malpractice, Professional Liability Matters

Dentist Facing Criminal Charges for Exposing Thousands to HIV

As if the fear of a dentist’s chair wasn’t already bad enough… The Tulsa Health Department recently warned thousands of patients of a local dentist that they may have contracted HIV, hepatitis B and/or hepatitis C due to poorly cleaned dental instruments. Of the 3,122 patients tested thus far, 57 tested positive for hepatitis C, three tested positive for hepatitis B, and at least one person tested positive for HIV according to recent reports. The cause? Dr. W. Scott Harrington allegedly re-used needles and used rusty instruments on patients with known infectious diseases, which could have put many at risk, according to a complaint filed by the Oklahoma Board of Dentistry.

April 23, 2013 • Design Professionals (A&E), Professional Liability Matters, Real Estate Professionals

Up-tick in Housing Market Means Increased Risk

The good news is that April typically marks the busy season for home sales and the housing market continues to gather strength. The bad news is that increased activity may mean additional professional liability risks face architects and engineers, designers, agents, inspectors and all real estate professionals. With all signs suggesting that the housing market is picking up momentum, and that trend is expected to continue, real estate professionals will find themselves with more work but they must proceed with caution.

April 18, 2013 • Insurance Products, Professional Liability Matters

A Gap in the Professional Liability Insurance Marketplace?

Is “tailor-made” coverage for emerging industries the future of professional liability insurance? “Traditional professional liability” policies, which typically serve lawyers, accountants, architects, brokers and doctors, may no longer provide the precise fit for evolving professionals. “Whether their clients are consultants, nurse’s aides or chicken sexers, many producers have found a gap in the professional liability marketplace,” according to the Insurance Journal. Coverage has not always kept pace with occupational changes, leaving many professionals pushing for an insurance product that addresses the biggest industry-specific exposures. So-called “tailor-made” policies may fill this gap.

April 16, 2013 • Engagement Letters, Professional Liability Matters

Avoiding the Courtroom through a Mediation Clause

Litigation costs are higher today than ever. A recent Duke University survey revealed that litigation costs continue to rise and are consuming an increasing percentage of US corporate revenue. Since 2000, litigation costs have increased 73% and that increase is not due to higher hourly rates but rather more lawsuits. What is the takeaway for you Mr./Ms. Professional? Stay out of the courtroom! You’re reading Professional Liability Matters so you have adopted some risk management savvy but inevitably you are likely to confront some dispute despite your best efforts. Accordingly, your engagement letter and particularly a well-tailored mediation/arbitration clause may be the perfect safety net.

April 15, 2013 • Employment Practices Liability, Professional Liability Matters, Risk Management

Firing Problem Employees: A How-To Guide

“They come into work disheveled and drunk. They swear while talking to customers. They have sex with a co-worker in the stockroom. Or worse yet, they steal money from the company or threaten to hurt the boss. Some employees turn out to be bad news for a company and need to be fired, but how can a company show misbehaving workers the door while protecting itself from wrongful termination or discrimination suits?” Our friends at Law360 provide great insight on the difficult and risky task of terminating an employee, here.