How to Close Your Law Practice and Ensure You’re Covered by a Malpractice ERP

How to Close Your Law Practice and Ensure You’re Covered by a Malpractice ERP

By Christina Melia, Esq.

Lawyers want to make sure their malpractice coverage tail supports them well into retirement. Reducing your future liability requires a clean transition to retirement phase.

When it’s time to close the books on a fruitful practice, lawyers must strategize much like they would when building a legal case. A retirement playbook for attorneys must consider liability exposures even after the practice closes its doors. 

Prior to the pandemic, about 15% of lawyers planned to work after age 65.[1] Yet, many baby boomers are now retiring sooner than retirement age,[2] and the generation’s attorneys are no exception. To remain covered by insurance when retiring, malpractice liability requires lawyers to adhere to specific requirements. This is especially true if an attorney plans to practice law in any other capacity.

Extended reporting periods: What are they? Why are they important?

Owners of law practices secure malpractice insurance to protect their businesses — and their own assets — from financial damages resulting from any legal actions pursued by an aggrieved client or other party. Once a lawyer retires, it’s critical to maintain this liability coverage so that any claims made based on past exposures would potentially still be covered. An extended reporting period (ERP) or policy tail helps meet the objective of continued coverage. Ahead of retirement, make sure to obtain an understanding of your current policy limits, because the ERP will mirror the limits of your current policy.  

One individual retirement ERP, for example, allows the owner of a law practice to report claims, acts or omissions up to seven years after the firm closes. To qualify for a Retirement ERP at no additional premium, a lawyer must be at least 55 years old and have an active malpractice liability policy with that individual ERP for at least three years. Here are a few other requirements for this ERP coverage:

1. To activate the ERP, you must inform your carrier via letter of your retirement plans. If you don’t, you could jeopardize ERP coverage.

2. You must cease the practice of law to retain the policy tail. Here are some situations to avoid which will render your ERP null and void:

  • Acting in an “of counsel” capacity to another firm or client
  • Notifying an insurance carrier that the firm has been closed or sold and still practice law
  • Filing a notice or brief in a courthouse

3. There are some situations in which you can still use your legal expertise subject to carrier approval and be covered under the Retirement ERP:

  • You can represent yourself
  • You can act as a mediator between two parties
  • You can teach continuing legal education classes
  • You can act as executor of a will or trustee for a trust arrangement

In order to avoid these requirements or restrictions a firm can purchase an Optional ERP.

13 Things You Need to Know When Closing Your Law Practice: A retirement checklist

Plugging gaps for exposures is an important consideration while you practice law and after you retire, but there is more you need to do before officially closing your practice.

  1. Give clients and staff sufficient notice — in person, by phone or mail — that you’ll be retiring and ramp up collection activities for outstanding balances owed to your firm.
  2. Decide whether there is enough time to litigate open cases or if clients must be referred to another attorney. Outline the process for seeking new legal representation and if necessary, facilitate the search for a new attorney.
  3. Politely decline new cases and provide detailed instructions on how to proceed for existing clients whose legal matters will likely continue beyond your retirement date.
  4. Craft specific messaging around your retired status for inbound business phone calls and emails. Set up active phone numbers and email addresses for forwarding so that clients clearly understand where to go for files or additional information.
  5. Send notifications of retirement and instructions on next steps to a last known physical address for existing clients who cannot be located. Retain funds for these parties or consider turning the monies over to a common interest on lawyers’ trust accounts (IOLTA) fund or other government entity.
  6. Take careful measures on information safety and data security when transferring client files. Electronic files should be password protected and/or encrypted, which can help reduce the chance of compromise or data breach.
  7. Seek the court’s approval before removing yourself as counsel from any active case and refund any fees paid by clients for planned services that extend beyond your retirement date.
  8. Determine status of inactive client files and retain original client materials. Keep any information and/or trust account activity statements that your client may need at a later date.
  9. Maintain active client files as well as client trust account statements for the amount of time specified by the laws of states where you practiced.
  10. Send a trackable letter updating your new status to the Bar Association as well as state and local licensing bureaus.
  11. Analyze partnership agreements (if applicable) for concluding the relationship per the terms of the contract.
  12. Extend the liability portion of your malpractice insurance for claims that may arise from past activities. An extended reporting period (ERP) is often available as “tail coverage,” which can protect you at a prescribed dollar amount for a set number of years.
  13. Extend the liability portion of your malpractice insurance for claims that may arise from past activities. An extended reporting period (ERP) is often available as “tail coverage,” which can protect you at a prescribed dollar amount for a set number of years.

In your line of work, you understand the importance of attention to detail. That mindset must continue as you approach retirement. For more information on how you can mitigate risks when closing your law practice, contact Lawyer’s Protector Plan.

This information is intended for informational purposes only. Nothing contained in this publication is, nor is intended to be, legal advice. Lawyer’s Protector Plan is not liable for any injury, loss, damage, or expense arising out of or in connection with the use of this information.


[1] Clio, “A guide to Preparing for Lawyer Retirement,” November 24, 2021

[2] Pew Research Center, “Amid the pandemic, a rising share of older U.S. adults are now retired,” November 4, 2021

Considering dismissing a difficult patient? Here’s when and how dentists can do it

Considering dismissing a difficult patient? Here’s when and how dentists can do it

Dentists have the right to dismiss unruly patients, but when done without due diligence, practitioners are vulnerable to wrongful abandonment and discrimination lawsuits. Know when and how to end a provider-patient relationship.

By Ty M. Galvin, D.D.S. and Michael A. Gile, D.D.S.

Are you obligated to continue treating a patient who repeatedly misses appointments, argues over treatment, disputes financial agreements or is increasingly rude to your staff?

While “patient divorce” may carry a stigma, the well-being of the doctor, staff and patient are worth the uncomfortable dismissal process. It is within a dentist’s full right to dismiss a patient if the dismissal is not for a legally impermissible discriminatory reason.[1]

As health professionals, we believe in our duty of care to our patients. This can make the decision to dismiss one particularly challenging but is a key component of doing our jobs well and providing optimal care to all.

When is it appropriate to dismiss a patient?

First and foremost, you cannot dismiss a patient based on their race, gender, national origin, disability, religion, genetic information or age. Practitioners are responsible for accommodating disabilities, such as providing interpreters for individuals who are hard of hearing during their treatment, for example.

It is a person’s behavior toward you and those within your office which will drive a decision to separate. Here are three key reasons to dismiss a patient:

  1. They are abusive to others within your office. Your first responsibility as a dentist and employer is to your patients and staff. When another patient becomes verbally or physically abusive, or sexually inappropriate to your team or toward fellow patients, they are a liability to your practice.

Case in point: When a young patient’s crown fell off days after treatment, instead of calmly requesting a replacement, one mother berated the dentist’s staff and threatened to ruin the office’s reputation. After a new crown was cemented, completing the treatment, the child and mother were dismissed from the practice due to harassment, libel and extortion of the office staff.

  1. They continuously miss appointments or refuse the recommended treatment. Refusal can take a variety of forms, from not scheduling follow up appointments to dictating the type of materials you use. Before you dismiss these patients, you can inquire about concerns or fears that may be causing them to ghost or implement policies like charging for no-shows.

Case in point: A new patient comes in for a replacement of four crowns. The patient refuses the dentist’s standard process and recommendations, insists on the use of a different lab and porcelain fused to metal crowns instead of zirconium. If the procedures have not been started, the patient can be dismissed on account of dictating treatment other than what the dentist recommends.

  1. They refuse to pay for performed treatments. A common cause for dismissal is nonpayment. In these instances, it is important to distinguish between patients who cannot pay and will not pay. Providing payment plans is one way to accommodate those who need assistance, but a refusal to make these payments is also reason for dismissal.

Case in point: A patient commits to a quadrant of dentistry including two crowns and a filling.  The patient agrees to financial arrangements but refuses to pay after the treatment is completed and tells the office staff “The work is already done, what are you going to do about it?”

Real concern happens when a difficult patient’s non-compliant behavior escalates. Paying attention and noting incidents can help track behavior and indicate the need for dismissal. Comprehensive chart documentation can support your decision should it lead to a claim.

The dos and don’ts of dismissing a patient

A successful “patient divorce” occurs when the patient does not leave the relationship angry and litigious. Here are best practices for ending the relationship quickly and without further incident.

DO:

  • Have the right documentation. If a patient should ever dispute their dismissal, you’ll need objective documentation of all incidents to substantiate your decision. This includes any emails, voicemails or texts from the patient as well as records of any outreach to them concerning their behavior. Keep these in their chart so they can be easily sourced.
  • Consult your State Board guidelines. States may have specific requirements around dismissing patients including how many days you must provide emergency care after dismissal.
  • Send a discharge notification letter by regular and certified mail. This maintains a one-way communication, void of dispute. Phone calls and emails are not recommended as they encourage potentially argumentative discussions. It is also best practice to include notes within this communication detailing additional care you recommend for the patient, as to avoid any accusations of abandonment.
  • Continue care for 30 days from the date of the notification letter. Remember, check your state for additional requirements.
  • Be courteous but concise. Practitioners are not required to provide a specific reason for service termination. Instead, recommend resources for finding a new dental office and explain how you will transfer medical records when appropriate.

DON’T:

  • Admit to not meeting the patient’s needs. It’s instinctual to apologize when you’re in uncomfortable situations or to avoid conflict. However, you don’t want to confuse the situation with malpractice.
  • Recommend another dentist. It’s better not to be blamed for another unsuccessful doctor-patient relationship. Keep your recommendations to resources such as the patient’s friends, family, social media and the internet to guide their search.
  • End a relationship in the middle of a treatment phase. The patient’s wellbeing takes priority. Make sure to time the discharge as to not endanger the patient’s oral health.

We all have those patients on the schedule that cause stress for the doctor and staff. While ending a relationship is never easy, dismissing a challenging patient can not only be a relief for the entire team, but it also likely puts the patient in a situation where they can receive better care.

When you follow the recommendations on when and how to end a relationship with a difficult patient, you’re building an environment more conducive to helping your other patients and keeping you and your staff safe. 

For more information on protecting your practice in difficult situations, contact PPP Risk Management.

This information is intended for informational purposes only. Professional Protector Plan for Dentists is not liable for any loss or damage arising out of or in connection with the use of this information.


[1] American Dental Association “Patient dismissal: Guidelines for Practice Success | Managing Patients | Patient Relations,” 2023.

Conflict Of Interest: More Than Just A Standard Waiver

Conflict Of Interest: More Than Just A Standard Waiver

A conflict of interest is a situation in which a person becomes undependable because of a clash between personal/self-serving interests and professional duties or responsibilities. Protector Plans Director of Claims, Elizabeth Mulligan, Esq., had the pleasure of interviewing Bill Munoz, an experienced attorney and zealous mediator, ensuring all parties understand their strengths and weaknesses and work to reach an overall resolution.

Bill recently mediated a case in which the main issue was an alleged conflict of interest and Bill had a lot of helpful insight, including how juries receive and value such claims. Check out the full interview with Bill to learn more about avoiding conflict of interest pitfalls in their own practices.

This information is intended for informational purposes only. Nothing contained in this publication is, nor is intended to be, legal advice. Lawyer’s Protector Plan is not liable for any injury, loss, damage, or expense arising out of or in connection with the use of this information.

For Attorneys: What to Expect from Trial Practice in the New Normal

For Attorneys: What to Expect from Trial Practice in the New Normal

As the world has grappled with the effects of COVID-19 and adjusted to the “new normal” for the past two years, litigators have had their worlds halted and then promptly turned upside down. Although society has gradually moved towards a more online world, COVID-19 set that move into overdrive, creating the need for lawyers to learn how to litigate in court virtually – an unprecedented thought. Both experienced and new lawyers had to deal with an entirely new way of practicing, and no one knew how to do it, making all litigators very wise according to Socrates.

As we have settled into this “new normal,” trends have emerged that allow for a comparison between in-person and virtual litigating – including in-person versus virtual jury trials, hearings, depositions, etc. This article outlines the successes and pitfalls of virtual versus in-person litigating and practical tips for moving forward in the “new virtual normal.”

This information is intended for informational purposes only. Nothing contained in this publication is, nor is intended to be, legal advice. Lawyer’s Protector Plan is not liable for any injury, loss, damage, or expense arising out of or in connection with the use of this information.