SME BUSINESS TIPS
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.