Preventing claims – Economic downturns
The following summarizes Hard Times: Managing risk in a troubled economy, Insurance Issues: Risk Management, December 2008
"Most wrenching financial crisis since the Great Depression"
"Meltdown of historic proportions"
"Serious financial turmoil"
When we enter a period of prolonged economic instability, the news headlines are provocative. For lawyers, particularly those practising in the commercial law areas, difficult economic times increase certain risks:
- Financial distress
- Devalued assets
- Great expectations (client and third party expectations that will not be met)
- Inadequate insurance