Lawyers Choice
Contact: Renee Krause
1 (720) 226-9423
rkrause@thelawyerschoice.com
thelawyerschoice.com
Subscription-based legal services are gaining traction — especially among solo and small firms looking for predictable revenue and streamlined workflows. But this model brings a new set of malpractice risks, particularly around scope of services, client expectations, and documentation.
Ambiguous Scope = Clear Liability
Traditional engagement letters define the matter, the fee, and the endpoint. Subscription models often reverse that: clients pay monthly without a clearly defined case or deliverable. If there’s no formal scope outlined — or if it’s left vague — it becomes difficult to prove what was or wasn’t included if something goes wrong.
Access ≠ Advice
Many firms promise “unlimited access” to an attorney as part of a subscription plan. But does access include legal advice? Contract review? Court appearances? If not clearly stated, a client may reasonably expect more than you’re legally prepared — or insured — to deliver. This opens the door to claims of neglect, failure to advise, or missed deadlines.
Ongoing Relationships Complicate Reporting
In a subscription model, attorneys may become aware of potential issues over time — but not formally “open a matter.” Malpractice policies require timely notice of any circumstances that could lead to a claim. If no case file exists or no one logs the concern, the firm may miss its reporting window, jeopardizing coverage.
Flat Fees Can Undercut Defense
If a claim is filed and your billing records show little or no time logged on the issue, it can be hard to prove diligence. Subscription billing may not track specific services — which weakens your ability to defend against allegations of inaction or inadequate advice.
How to Reduce the Risk
- Use clear engagement agreements that spell out what is and isn’t included
- Create a matter intake process even for flat-fee or recurring clients
- Document all interactions, even if no formal “task” is performed
- Regularly audit subscription accounts for dormant risk or client misunderstandings
- Ensure your malpractice insurance policy is aligned with your subscription model
A New Model Needs a Modern Risk Strategy
At Lawyers Choice, we help firms structure their insurance coverage around evolving practice models — including subscription-based services. If you’ve shifted to flat-fee or recurring revenue structures, we’ll help ensure your risk exposure hasn’t grown faster than your policy protections.
