John Whittaker and John Machell explain how LLP members can best protect themselves from personal negligence claims
It is now almost eight years since the creation of the limited liability partnership as a new business vehicle. Conceived as a means of providing professionals with a tax transparent way of practising with limited liability, LLPs are now a common feature of general business life in the UK, and are used in a wide variety of economic sectors, from traditional small scale family businesses to multi-billion pound hedge funds. More than 1,300 firms of solicitors now practise through incorporated bodies (most of which are LLPs) and, of those appearing in The Lawyer 100, only four of the top 25 remain traditional partnerships.
Most firms regard their conversion to LLP status as one part of their broader risk management strategy. Although English law firms have, to date, avoided catastrophic client claims, it is the spectre of an insurance-busting professional negligence claim that has been the primary driver behind conversions. The purpose of this
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