What are the consequences and considerations if a key person, or fee earner, within your firm is unable to work? Do you have adequate protection in place to mitigate against the risks of this?
Key to any successful SME law firm, is stability. The ramifications of losing a partner or key person may disrupt a firm beyond the difficulties of recruiting an appropriate replacement. It could affect business continuity, staff morale and disrupt client relationships. In addition, a firm could lose a technical or knowledge skillset that is difficult to replace. Finally, there may be cash flow and other financial difficulties to navigate if a fee earner is unable to continue working.
This guide will help you to:
- understand the potential financial and functional impact of losing a key person
- discover how your business could compensate for the impact of lost income, should a key person be unable to work
- think about your firm’s business continuity and succession plans
- evidence your continuing competence in line with the Solicitors Regulation Authority requirements in demonstrating ’an adequate understanding of the commercial, organisational and financial context in which you work and your role in it’.
This guide was created by Wesleyan Bank, partner of the Law Society.