Lawcovernotes August 2017

3. Claims against law practices have been changing over the past few years. Some of those changes are very heartening; the number of claims brought against practices each year has been declining since 2010. The types of claims have also been changing over that time. At Lawcover we spend a lot of time analysing the causes of claims, and focusing our risk management efforts on those problem areas. Below is a table showing the breakdown of areas of law which gave rise to notifications in 2005, just after Lawcover Insurance was established, and 10 years later in 2015. While conveyancing remains the largest single source of claims, other areas have been in decline over the same time. For example, out of time personal injury claims have almost halved as a proportion of our total notifications. We put that down to a more risk-aware profession and better practices for recording limitation periods. To reinforce that message, Tony Reynolds gives a primer on the importance of limitation periods later in this edition of Lawcovernotes. One area of practice where claims have doubled in the past 10 years is probate and wills. With an ageing population, we are seeing an increasing number of claims relating to wills, Succession Act 2006 disputes and testamentary capacity. Jen McMillan and Rosemary Workman’s articles highlight potential pitfalls for solicitors in this area. It is incumbent on all solicitors to keep up-to-date with changes in legislation, particularly relating to the Home Building Act 1989 and Stamp Duty. Both are complex, claims-prone areas. Elissa Baxter and Simone Herbert-Lowe’s articles on those changes, and the pitfalls for practitioners who do not keep up, also appear in this edition. Overall, however, there is growing awareness and better management of claims risks, leading to fewer claims against solicitors in the past year. That’s good news for the legal profession and for their clients. Kerrie Lalich Chief Operations Officer As the overall number of claims against solicitors declines, particular claims are increasing. 2005/06 2015/16 Area of Practice % of Notifications % of Notifications General Commercial 8 9 Sale & Purchase of Business 3 3 Conveyancing 26 21 Leases 4 3 Mortgages & Commercial Borrowing 10 4 Tort & Workers' Compensation 8 4 Out of Time Personal Injury 10 6 Out of Time – Other 1 2 Other Litigation 14 19 Matrimonial 6 10 Probate & Wills 5 10 Other (incl. Criminal, Immigration, Defamation & Revenue) 4 9