Corporate counsel need to insure against lawsuits

Corporate counsel need to weigh up the risks of their position and their need for insurance in view of an increasing number of lawsuits against in-house counsel. According to an article written by Renato Pontello for the Canadian Lawyer magazine, closer scrutiny by activist shareholders, securities regulators and the courts means corporate counsel need to consider professional indemnity insurance. Their liability has increased as their profile has been raised, Mr Pontello says, adding: 'It used to be assumed a lawyer only owes a duty of care to his or her client. In an increasing number of cases, however, lawyers have been held liable for misrepresentations where there was a reasonable expectation that the statements would and could be relied on by third parties.'