January 2012 Bar Bulletin
 
Skip Navigation Links
CLE / Education
For Lawyers
Judicial
Legal Help
Membership
Special Programs
YLD
 
MyKCBA Login


January 2012 Bar Bulletin

Planning for Practice Succession and Continuity

By Michelle Bomberger

 

In our practices, when we hear the term "business continuity," we most readily think of what to do in the case of a physical loss such as a fire, flood or earthquake. These physical losses are important risks to protect against, but "business continuity" planning goes beyond that.

Business continuity planning must also address the impact of losing a key person in the business or the potential risk associated with reliance on vendors such as IT or contract lawyers. It also allows you to address succession planning so that you can leave the business in a planned and organized way.

Physical Losses

Generally, physical assets are protected using insurance. In the case of a theft, fire, flood or other loss, the insurance company covers the costs (minus the deductible) for any losses, including replacement, litigation or other expenses incurred. That being said, other key practice issues arise that insurance does not address.

The company must maintain backups and key procedures to help it get back up and running in the case of a loss. An example would be the theft or loss of a sole practitioner's laptop computer. Insurance will pay the cost of replacing the laptop itself and may also cover the cost of obtaining new template documents or other key tools. The insurance may assist with issues of breach of confidentiality due to the files being lost.

The insurance, though, certainly could not help the attorney recreate the client files. The attorney needs to have a system, such as a backup process, to protect the firm from losing this data permanently.

People Losses


...login to read the rest of this article.


Return to Bar Bulletin Home Page

KCBA Twitter Logo KCBA Facebook Logo KCBA LinkedIn Logo KCBA Email Logo

King County Bar Association
1200 5th Ave, Suite 600
Seattle, WA 98101
Main (206) 267-7100
Fax (206) 267-7099

Pillars of the Bar Page

King County Bar Foundation Home Page

Charitable Arm of the Bar

KCBF Endowment Page

Future of the Law Home Page

PRO BONO DICTA


All rights reserved. All the content of this web site is copyrighted and may be reproduced in any form including digital and print
for any non-commercial purpose so long as this notice remains visible and attached hereto. View full Disclaimer.