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How to minimise the cost of Covid-19 to your practice C
ovid-19 has created a range of additional risks for law firms. In this article, James Robins and Ivan Roots of Womble Bond Dickinson, who are specialists in defending professional negligence claims, discuss some of the key risks that may arise and how best to mitigate them. History teaches us that there is a correlation between recessions and professional negligence claims against solicitors. Recent weeks have seen a transformation in how law firms operate, with most moving to remote working. Many firms have invested heavily in their IT systems and have well developed business continuity plans but some do not. Firms have also had to respond to the practical and evolving challenges of providing a legal service in lockdown. Litigation deadlines still need to be met. Trials will continue. Commercial deals will still go through. Private client solicitors have seen a huge surge in demand for wills. Many law firms are embracing technology and other creative solutions (for example “wills through the window”) but not all law firms will be agile enough to adapt quickly to these practical challenges and some may be using untested solutions. Below we set out some of the more common problems firms will face and what steps they can take to mitigate their effects. IT systems failing and critical deadlines being missed: ■ Risks of this nature can be mitigated by ensuring that a full review of all critical dates across teams is completed and then recorded in a location that can be accessed by all of the relevant people across the firm. For example, by recording all relevant critical dates within each file and then additionally in a central database or diary as well. Cyber fraud especially on smaller firms with limited IT protection thereby increasing the firm’s exposure to breach of trust type claims: ■ Be extra vigilant of criminals taking advantage of the circumstances and phishing. Never download or open attachments from unsolicited emails. Do not follow links that you are unsure of and ensure that you do not give out any information unless you are completely sure it is not a scam. ■ All staff should be trained to recognise these types of scams and firms should consider if refresher training is necessary.
them to someone working from their own personal devices in order to protect this information. Insufficiently developed business continuity plans and/or partners having to focus on managing the firm’s response to the crisis over client needs: ■ Everyone has been affected by Covid-19, including your clients. Make sure that you update all clients with regards to the firm’s situation wherever possible. If you are unable to provide a service to your client at all you must notify them as soon as you can, and advise that they find another solicitor. ■ Some firms may fail to notify claims or circumstances to insurers in accordance with policy terms because risks are harder to monitor remotely or simply due to operational and other pressures. The key here is to notify all claims or circumstances as promptly as possible as soon as they are discovered. A material number of solicitors or other employees being sick or furloughed: ■ If you are operating with skeleton staff it is very important to make sure that all the staff are fully aware of policies relating to things such as handling client monies and other high risk areas, to prevent any potential claims arising. ■ Make sure that all staff on sick/furlough leave have updated out of office messages with appropriate alternative contacts. Supervision regimes faltering: ■ The SRA still expects firms and their solicitors to meet the high standards that are usually expected even during these unprecedented times. However, they have made it clear that if any complaints are made against a firm or solicitor during, or as a result of these times, they will take a proportionate approach and take all of the factors into consideration. ■ If you do come across difficulties relating to supervision regimes faltering, it is very important that the approach taken is clearly documented. This means that it can easily be distinguished that you were trying to do the right thing. ■
James Robins & Ivan Roots Womble Bond Dickinson
Data breaches: ■ In order to prevent this, ensure all staff are using work devices provided by the firm (mobile phones, laptops) as far as possible. Ensure that you keep your all of your systems up to date, particularly remote connection software, as this will protect you from the latest known cyber vulnerabilities. ■ If members of staff do not have access to secure IT equipment, they must not handle client’s information. If it is absolutely necessary, redact any documents before sending
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