Beware of risks involved in serving as a director of a corporate client
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Attorneys who are asked to serve on the boards of organizations that are also their clients should be extra cautious about avoiding risks to themselves, their firms and their clients.

A whitepaper created by the lawyers who work for CNA to provide risk management and loss prevention services to attorneys insured by the ISBA’s endorsed professional liability insurance provider, Lockton Affinity, LLC, outlines six risks that lawyer-directors must identify and mitigate. It also presents four items to consider in determining whether a conflict of interest exists. And, it concludes with risk control policies that lawyer-directors should put in place to manage risks.

Among the risk control policies that lawyer-directors should put into place are drafting a memorandum to the organization’s board outlining the potential risks of having a lawyer-director on the board, doing whatever is necessary to protect attorney-client privileged communications and documents, and recusing himself/herself from all decisions and votes that may involve a conflict of interest or other ethical considerations.

To read the entire paper, click here. For more information, contact Mike Schrandt, senior account manager, Lockton Affinity, LLC; Phone: 800-679-7154; Fax: 913-652-4682; Email: