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ARTICLE · 02 MAY 2012

Simple, practical steps to help lawyers avoid professional indemnity (PI) claims

Colin Biggers & Paisley
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Many PI claims arise from problems relating to file notes, the source of instructions and accepting client assurances.

AustraliaInsurance
Bianca Slabacu
Bianca Slabacu

In brief - Many professional indemnity (PI) claims arise from three common pitfalls

Three of the most common oversights giving rise to PI claims against lawyers are:

  • Not appreciating the indispensible nature of file notes
  • Failing to identify the source of your instructions properly
  • Accepting a longstanding client's assurance that "everything is under control" without taking independent steps to ensure that your legal obligations are fulfilled

File notes and written client advice

Most legal practitioners will agree that documenting instructions received from a client is an ordinary prudent task undertaken in the proper maintenance of a file. However, this task is often overlooked, particularly in busy practices.

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