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Want to keep your firm out of court, and keep your professional malpractice insurance premiums low? These 10 tips from Rickard Jorgensen, president and chief underwriting officer of Jorgensen & Co., can help.

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10. Have the expertise to provide the services you offer. Beware moving out of your comfort zone to “round out” service to a client.

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9. Be cautious of emerging high-risk areas, such as SEC attest and financial institutions, investment funds, etc.

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8. Manage client expectations at the outset, and throughout the engagement. Don’t make unattainable promises or predict outcomes.

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7. Screen new clients and do background checks. There may be a scary reason why a potential client is switching accountants.

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6. Include a mediation clause in all engagements. Even better, if possible, include a limitation of liability clause.

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5. Where you have access to client funds, carefully supervise your own employees. Consider purchasing an employee dishonesty bond with a third-party (client coverage) extension.

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4. Be aware of what is a reasonable fee -- especially when dealing with trusts, or unsophisticated, elderly or otherwise vulnerable clients. Someone else may see it as gouging.

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3. Do not create conflicts of interest by investing in clients, loaning to clients, or borrowing from clients.

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2. Do not sue for fees. Ever.

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1. Always get an engagement letter, and be alert for engagement drift -- do not perform additional services for a client without a new engagement letter or signed rider.

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