Professional Liability Matters

March 5, 2014 Ethics

Shhh…Loose Lips Sink Ships: Confidentiality During Commute

Although studies vary, by most accounts we spend anywhere from 20-50% of our waking hours at work. Reportedly, nearly 10% of U.S. workers have commutes of 60 minutes or longer and the average one-way commute is about 30 minutes. What does this tell you? We’re either working or commuting a great deal. As a result, it’s probably no surprise that professionals may gab about work-related issues while commuting. But therein lies the risk. Ethical responsibilities prohibit professionals from disclosing confidences, yet we may be …

February 27, 2014 Employment Practices Liability

Holy Smoke! Employers Refusing to Hire Smokers

A recent trend is developing of late where employers are considering “no smoker” employment policies. These policies go beyond “no smoking in the workplace;” some ban employees from smoking at any time. Such policies may lower insurance premiums. Some employers also suggest that these policies cut down on productivity issues due to smoke breaks and high absenteeism due to smoking-related illnesses. Opponents of these policies argue that they are discriminatory or in violation of privacy laws. This raises an interesting debate.

The legality of non-smoker …

February 26, 2014 Ethics / Legal Malpractice / Risk Management

Are Law Firm Advertisements Covered?

All insurance policies are not created equal. Some policies contain exclusions that many professional may not expect. Take for example a recent decision that evaluated whether a law firm’s advertising practices were covered under a D&O policy. In Rob Levine & Associates, Ltd. v. Travelers Casualty, a Rhode Island federal court considered whether conduct relating to Internet and television advertisements was considered “professional services.”

The declaratory action stems from a series of law firm advertisements that urge would-be clients to “Call a Heavy Hitter …

February 25, 2014 Legal Malpractice / Risk Management

Criminal Exposure Arising from Secret Recording

A fundamental risk management pointer is to properly document your file. As a result, many professionals are great note-takers; they follow-up conversations in writing, confirm strategy and clearly document instructions. These are all risk aversion tools to protect the professional, to hold others to oral commitments, and provide clarity in future disputes. But, professionals cannot take this too far. There is a difference between jotting notes or confirming conversations on the one hand, and secretly recording or transcribing conversations on the other. Such secret recordings …

February 20, 2014 Employment Practices Liability / Risk Management

Winter Wreaks Havoc on Employers

Winter storms create challenges for employees and employers alike, with snow, sleet, and freezing rain adding unwelcome stress and hassles. An employer has certain responsibilities when it comes to responding to weather conditions. To eliminate uncertainty and confusion inside the workplace, employers are advised to create a comprehensive emergency weather plan.

Here are just a few factors to keep in mind when preparing a weather plan:

Fair Labor Standards Act

An employee may be exempted from the FLSA’s wage requirements if the employee is paid …

February 19, 2014 Director and Officer Liability

D&O Suits Reach Historic High: Economy to Blame?

The fallout from the 2007-2010 economic downturn is behind us, right? Nope; not so for the professional malpractice community in light of the many lawsuits arising from the recent market collapse. In fact, lawsuits relating to 2007-10 bank collapses in particular have increased dramatically and the primary targets are executives. According to a February 13, 2014 report which is available here, litigation against directors and officers of failed banks reached an all-time high in 2013. To make matters worse, many of those directors were …

February 18, 2014 Insurance Products / Risk Management

Double Covered but Uninsured

Prudent professionals maintain different types of insurance to protect against various risks. Some typical policies for professionals may include D&O, cyber, and/or E&O policies. The foregoing policies and others may overlap, while others allow gaps for claims that would not be covered. It is incumbent upon each professional to purchase the perfect mix applicable to her practice; there is no one size fits all and more is not necessarily sufficient. Although multiple policies may fit together seamlessly to form a safety net, other policies allow …

February 13, 2014 Risk Management / Technology

The Risks of Auto-Reply Messages

One of the consequences of modern technological advances is that many expect 24/7 access to their employees and outside professionals. Today there is really no such thing as unreachable and there are fewer and fewer locales that are “off the grid.” 48 hours without responding to e-mail is not acceptable to some. As a result, when business travel, vacation, or other events preclude timely e-mail responses, many employees and professionals utilize the all-too-familiar auto-reply message. However, some experts suggest that these messages carry considerable security …