Law firms are well aware when increasing litigation impacts their clients, but they may not recognize the increased risk their own business faces. "Much like doctors being their own worst patient, sometimes lawyers are so focused on their clients that they may not realize that risk-related issues are bubbling up inside the firm," notes Laurie Sablak, Assistant Vice President and Product Manager for Employment Practices Liability Insurance (EPLI) at OneBeacon Professional Insurance.

As broad changes in the business and technology landscape combine with the current economic downturn, lawyers face heightened exposure in several distinct areas of their businesses:

• Professional liability. Clients are more likely than ever to sue lawyers for perceived errors and omissions, and lawyers today are much more willing to sue other law firms. This trend is exacerbated by the current economy.
• Network and technology security liability. Law firms have always held vast amounts of confidential information. But their information-related exposure has increased geometrically as much of that information now is electronic, stored not only on firms' networks but transmitted over the internet and used on lawyers' laptops, cell phones and personal data assistants (PDAs).
• Employers' liability. Law firms are businesses, and like other companies in today's marketplace, many law practices are trimming workforces while pushing to maximize staff productivity. Hence an increase in claims ranging from wrongful termination to wage and hour violations.

Professional liability: Looking for someone to blame

Experienced lawyers shouldn't be surprised by the impact of the current economy on claims and litigation. "A lot of it is familiar territory. We tend to see these same kinds of claims anytime there is a downturn in the economy," explains Kim Pihlstrom, Senior Vice President in charge of OneBeacon's Professional Liability and Real Estate Professional Liability divisions.