How to reduce the risk of claims against you

The tough market conditions that we are currently facing are leaving solicitors more vulnerable to claims than ever before. Burying your head in the sand is no option as far as risk management is concerned. Come the renewal season, insurers, as well as the SRA under its new handbook rules, will want to see a robust and comprehensive risk management system in place.

The good news is that a few behavioural changes can help lead to a reduction in claims. Admittedly, with time at a premium, these are not always easy for partners and managers to implement in practice. However, setting aside the time to consider these top ten tips, and checking that risk management processes are in place to cover them, can help reduce the risk of a claim being made. They may seem obvious, but experience shows they are frequently not all adhered to.

Communication, an open-door policy and teamwork are key towards identifying all operational risks as part of your honest assessment of risks and the bigger picture. Improvements to internal systems, as well as the outfacing client experience, can mitigate the risks of claims.

In respect of client service, a useful tip can be to imagine you are the client. What would you want? What would you expect? What would impress you most and cause you to be a positive advocate to others about the experience and service received? Would you keep on instructing your accountant after a half-hearted service, where you had to chase for information? Almost certainly not.

Remember that clients hate nasty surprises and you're far more likely to have a happy client (and your bill paid without query) if you have communicated in a clear and effective way. Remember, clear communication and good client relations are a wonderful marketing opportunity for your firm. It's really not rocket science!

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Staying out of the firing line

1. A good client selection or 'client vetting' system. Economic pressure can result in lawyers taking on unsuitable clients. Short-term thinking may be more costly in the end!

2. Scope of the retainer. Send an engagement letter setting out clearly what you will do. Record any change of instructions in writing.

3. Supply adequate information and accurate cost advice, both at the outset and as the matter progresses (nothing irks a client more than a high and unexpected bill).

4. An effective diary system (missed time limits are still a large cause of claims). Training for staff is important and the system must be monitored to ensure it works.

5. Undertakings. Providing an undertaking should be treated with great caution. Consider the terms carefully and ensure that you will not become personally bound.

6. File notes '“ record all essential points of a meeting or a telephone conversation with the client. 'I didn't have the time' will not afford a defence if matters turn sour!

7. Appropriate communication with your client. Managing their expectations is key '“ and this is not always easy. Confirm instructions in writing.

8. Proper supervision of fee earners, regular file reviews and random file audits. These simply cannot be ignored. Also, monitoring emails '“ do you have a clear email user policy?

9. If a complaint arises, investigate and deal with it thoroughly at an early stage. Delay or not taking the matter seriously simply antagonises an aggrieved client.

10. Managers must develop a culture where a no-blame approach encourages staff to disclose concerns or errors, which may enable resolution of a problem at an early stage.