Solicitors finally have the right to obtain professional indemnity insurance on the open market.

But with rights come responsibilities.

In particular, the market expects solicitors to assume responsibility for their own claims records.Commercial insurers will pay attention not only to the number of claims, but also to why the claims arose and what is being done to ensure there is no repeat.

That is why, for thousands of law firms, risk management is 'suddenly' important.So what can solicitors do to make their firms as attractive as possible to insurers?The first step is to understand the principal causes of mistakes - the common themes that run through all claims, irrespective of the area of law your firm practises.The most common errors include missed time limits, delay, ineffective communication, poor delegation and inadequate supervision, imprecise or negligent undertakings, inefficient office management and inadequate knowledge of the law.Having identified risk, the next step is to analyse risk.

This means asking how exposed your firm is to risk in the actual work you do.Some practice areas such as conveyancing and litigation carry a higher risk than others such as crime and immigration law.

But always remember: low-risk work is never no-risk work.

Claims arise in all areas of law.It is also vital to raise staff awareness of risk.

Everyone from partners to post clerks are capable of errors that may result in a claim.For example, the post clerk should be made aware of the dangers of putting packets into the DX system.

Days may elapse before the packet is returned, resulting in a missed time limit.

All firms should be asking themselves some tough questions:Time limitsDoes every fee-earner have a system that identifies relevant time limits on each matter and helps minimise the possibility of missing it? If s o, would the system break down if the fee-earner were away from work? Are individual diaries backed up by effective office-wide systems? Are solicitors aware of the need to research time limits in each case to identify unusual limitation periods?DelayWhat type of review system is your firm using to minimise the chance of files being overlooked? Does your firm's culture encourage staff to acknowledge 'mental block' files that are causing them problems and to discuss them without recrimination? Does your firm nominate trouble-shooters to identify and take control of problem cases?CommunicationProblems often arise from a failure to identify the client or to confirm the client's authority, to recognise conflicts of interest, and to clarify the scope of the retainer.

Are your staff trained in interviewing skills? Does your firm use pro-forma checklists and standard letters/attendance notes? If so, how could they be improved?Delegation and supervisionIs work delegated in a uniform manner according to standard procedures? Are experienced lawyers using 'delegation' as a means of off-loading difficult or time-consuming files? Do you use forms or other memoranda to record/monitor delegation and supervision? Do supervising partners meet with staff to review delegated work and to identify problems?UndertakingsHas your firm issued clear guidance to staff on who may give an undertaking, when it may be given and the terms in which it should be expressed? Have you prepared standard undertakings and reviewed how undertakings are recorded on your files?Office managementDoes your practice use case plans, file control/tracking systems and fixed checking procedures for engrossed documents? Do you have an office manual and training for support staff? Are there adequate internal controls for monitoring incoming and outgoing mail? Are your partners trained in practice management skills?Knowledge of the lawDo you have a training partner responsible for co-ordinating CPD? Are lawyers discouraged from handling matters outside of their competence or which the firm is unable to resource adequately? Do you organise regular meetings of solicitors at which feedback and observations on legal issues can be expressed?The final step is to take action to reduce risk.

This can only mean implementing systems and monitoring them continuously to ensure they are being used correctly and efficiently.Which systems work best? Which diary and file review systems, organised delegation procedures, staff supervision structures, file audits and peer review/monitoring schemes would be most appropriate for your firm?If in doubt, firms can obtain advice and support from experienced risk managers, who can work with firms to improve and develop their existing claims prevention procedures.In this way, solicitors can respond to the challenge of the open market for professional indemnity insurance by proving that they have taken ownership of and responsibility for their claims histories, and are taking steps to reduce the risk of claims in the future.TWENTY-FIRST CENTURY RISK MANAGEMENTSt Paul International - the Law Society's joint venture partner for provision of professional indemnity insurance - is to develop an enhanced risk management service to work with law firms and help reduce negligence claims.The service will be staffed by experienced solicitors from the Solicitors Indemnity Fund's risk management department, who will be able to draw on support from the St Paul's global Risk Management Resource Centre.The new company's risk managers will be available to address public and in-house seminars and to advise firms direct, over the telephone, in writing, by e-mail.

Bespoke visits and consultations can be arranged, both to provide preventative advice on systems and risk controls and to help firms respond effectively in the aftermath of damaging or catastrophic claims.The company plans to issue regular bulletins, updates and alert notices to warn of legislative and procedural changes.

Information will be delivered through traditional and new media, including press articles, e-mail and the internet.St Paul is to hire new risk managers able to service law firms from offices in Leeds and Bristol as well as from London.Further information is available from John Verry, risk management practice leader, St Paul International, on 020 7645 6800 and from www.solicitors.stpaul.co.uk