instructions when you closed any given file, seek those instructions
now. Many attorneys will simply send letters to their clients’ last
known addresses. Once you learn their wishes, carry them out. If you
are going to destroy a file, make sure you follow through with the
notion of destruction. “Destruction” does not mean leaving the file
in a dumpster behind the office. You should incinerate or shred these
files. You cannot compromise your client’s confidences, even in file
destruction. Again, document your actions. Track the client’s name,
file matter, method of disposition (destroyed, returned), and date of
disposition.
Turning to one specific business concern, contact your malpractice
insurance carrier well in advance of closing. The purpose is to begin
the process of learning about the options for obtaining an extended
reporting endorsement (ERE – more commonly referred to as a “tail
policy”). This endorsement is not a new policy. It simply provides
an attorney the right to report claims to the insurer after a policy
has expired or been cancelled. Again, it is important to note under
most ERE provisions, the purchase of the endorsement is not one of
additional coverage or of a separate and distinct policy. This means no
coverage will be available for a wrongful act that takes place during
the time the ERE is in effect. So, if a claim arises several years post
retirement out of work done in retirement, for example writing a
will as a favor for a friend, there would be no coverage for that claim
under the ERE. That’s worth remembering.
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