As if managing a business through a difficult economy wasn’t hard enough, regional law firm LeClairRyan is warning business consultants that they may face a greater risk of becoming scapegoats for other companies’ problems if and when things go sour.

"An unfortunate consequence of the so-called Great Recession is that business owners are increasingly trying to pass responsibility for their financial failures to their outside advisors," said Nancy M. Reimer, a Boston-based shareholder in LeClairRyan, who focuses her practice on defending professionals against malpractice claims. "Outside accountants and other professionals must be especially cognizant of this risk – and take extra steps to protect themselves."

Even if the potential claim against an advisor is weak, Reimer added, cash-strapped companies will often sue anyway in hopes of winning a settlement from the advisor’s insurance company.

"Plaintiff’s attorneys are well aware that some insurance companies are prepared to write off settlements as a cost of doing business and would rather pay than fight back in court," she said. "By insisting upon client engagement letters with clear and detailed contractual terms, as well as by carefully documenting their actions and conversations once they are on the job, advisors can dramatically reduce their liability exposure."

With business failures occurring across a wide swath of industries, accountants and other outside advisors should consult with their legal counsel on industry-specific best practices that can help reduce their exposure amid this greater risk, Reimer said in a statement.