Loss prevention refers to the processes by which law firms identify and then attempt to avoid or minimize the liability and professional responsibility risks potentially threatening them and their lawyers. By now there should be no doubt that loss prevention is critical to law firms. Since the mid-1980s there have been dozens of publicly-reported settlements by, or verdicts against, large and sophisticated law firms exceeding $20 million. There are numerous publicly-reported settlements by, and verdicts against, law firms in the $3-19 million range, and six-figure verdicts and settlements abound. These totals do not include defense costs, which are often substantial, and may equal or exceed any amounts paid in settlement or to satisfy judgments. Many fine law firms have been disqualified in representations because of conflicts of interest and potential breaches of confidentiality, and partners and associates at respected law firms have been exposed to professional discipline and criminal prosecution for all manner of offenses.
Even where allegations of negligence or misconduct are found to be groundless or the amount in controversy is relatively insubstantial, a law firm's reputation may be compromised; the lawyers whose conduct is at issue may feel stigmatized, and client relationships surely are disrupted or impaired. In short, law firms and lawyers who are alleged to have engaged in wrongdoing suffer in many ways that are not purely financial.
Aon Risk Solutions' Professional Services practice has long been committed to
assisting its law firm clients in their loss prevention efforts. We are the only broker with a dedicated, comprehensive loss prevention approach. Our loss prevention efforts are carefully tailored to our clients' needs and desires. We strive to be proactive rather than reactive, and we pride ourselves on spotting issues and formulating methods for addressing them before they pose problems for our clients. We work cooperatively with our clients to help them achieve their practice goals at minimum risk to the firm and its lawyers.