A Client’s Fate in Your Hands
Professional indemnity insurance is a legal requirement for any practicing solicitor. This is just as well – high stakes tend to ride on the ability of a solicitor and the quality of his or her work.
Good and bad decisions as a solicitor can mean a lot for the outcome of a case. It could mean the difference between your client receiving a significant compensation payment or a bill for the legal costs of the opposing party.
It could even mean the difference between a client going to jail or leaving the courtroom as a free man or woman.
With so much depending on your ability as a solicitor, any professional indemnity against you has the potential to be very high indeed. You should make sure that your professional indemnity insurance is sufficient to cover you.
It’s highly likely that your client has very little knowledge of the law. As such, they will be essentially putting their fate entirely in your hands when they hire you.
Of course, a solicitor’s role can extend far beyond the courtroom. A solicitor could be hired to draw up and look over contracts, across all areas of the law – from conveyancing contracts, to employment contracts, to sales contracts.
A mistake or oversight in this department could spell disaster for either party named in the contract, or both – loopholes to be exploited, and red tape to bring any working relationship to a grinding halt.
The potential losses in this sort of situation are only limited by the scale of the parties involved and the size of any project they are involved in. If said parties are large and you make a mistake, get ready for a large professional indemnity.
Other Solicitor Indemnity
Solicitors don’t just deal in business relationships. Other solicitors work in more personal matters, such as family law and probate law.
Negligence in family law could occur during a divorce settlement – a mistake could lead to your client getting a completely unfair share of what the partners owned during the marriage.
Passion can rule the reasoning of all parties involved in this kind of emotional legal situation, particularly when there are children involved.
A client who feels that your negligence prevented him or her from getting a fair deal is likely to do anything to seek justice, including seeking professional indemnity from you.
Probate is another area of the law which can cause emotions to run high – the family of a testator may discover that a Will you created for a client is invalid for some reason – if the estate is left intestate as a result, parties who were due to benefit from the estate may be prevented from doing so.