SME BUSINESS TIPS

Macclesfield Express - - BUSINESS -

CLAIMS al­leg­ing pro­fes­sional neg­li­gence have be­come an almost in­evitable part of pro­fes­sional life.

Some­times, un­avoid­ably, things go wrong – even as an ex­pe­ri­enced pro­fes­sional.

It is im­pos­si­ble to safe­guard your business against ev­ery po­ten­tial mis­take, how­ever you can safe­guard it against the cost of those mis­takes by tak­ing out pro­fes­sional in­dem­nity in­surance, and by im­ple­ment­ing good risk man­age­ment.

This week’s tips are from Oliver Dent, solic­i­tor at Kennedys Law, on avoid­ing claims against your business. Ob­tain in­surance

Pro­fes­sional in­dem­nity in­surance is in­tended to pro­tect pro­fes­sion­als and their busi­nesses in the event of claims made by a client or third party.

In­surance pro­vides a safety net when all else fails and it should be borne in mind that cover should be ad­e­quate, suit­able for your business, and it is im­por­tant to have a de­tailed un­der­stand­ing of the terms of your pol­icy. Keep de­tailed records

Al­ways keep records of your con­tracts, clients and the work you per­form as th­ese records can be in­valu­able in the event that a claim is made, par­tic­u­larly as claims of­ten come out of the wood­work a num­ber of years after the file has closed. Re­port any is­sues to your bro­ker or in­sur­ers as early as pos­si­ble

Re­port­ing pro­ce­dures will usu­ally be dealt with within the terms of a pro­fes­sional in­dem­nity pol­icy and com­ply­ing with th­ese obli­ga­tions avoids in­sur­ers dis­put­ing cov­er­age of any claims against the business.

A good re­la­tion­ship with your bro­ker is im­por­tant as the bro­ker will act as the go-be­tween be­tween your business and the in­surer and will help deal with any is­sues and ar­range for cover on re­newal.

●● Oliver Dent, solic­i­tor at Kennedys Law

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