Professional liability insurance protects you against claims for
damages sustained by clients as a result of services you have
rendered in your professional capacity. It's not the same as a
general liability policy (which largely covers against bodily
injuries and property damage). While professional liability
insurance can protect your company against claims for
physical damages, it serves a variety of professionals with very
different working remits. For example, it will protect some
companies against claims for perceived financial loss, some against
misrepresentation claims, some against claims for a perceived lack
of medical or psychological improvement following treatment, and so
on…
"Cover brings a very real sense of calm"
Let's be absolutely clear about this: aggrieved or injured
parties are entitled to sue you for damages. And the repercussions
can be severe - unless you're covered by a suitable professional
liability insurance policy.
So, one of the first things any business should do is take out
the very best professional liability
insurance (sometimes called malpractice cover). Cover brings a
very real sense of calm, and is fine-tuned to the needs of your
particular industry. After all, each industry has its own
particular list of potential problems.
In many cases it's the disparity between what is and isn't
achievable that leads to claims. Any advice driven industry
professionals, from business advisors and management coaches,
through HR operatives and life coaches, to counsellors and
psychotherapists will find a big onus on meeting client's sometimes
unattainable expectations. So it's not surprising that there is
sometimes a shortfall between what is required and what is
delivered, and, as a consequence, why professional liability
insurance is so very important.
Be proactive
Many professional liability insurance professionals will tell
you that the best way to deal with claims made against you and your
business is to avoid them altogether. Far from being a glib
simplification, this actually makes a lot of sense. While the right
professional liability insurance package will cover your costs in
such a case, it will lead to a rise in your premiums and
undoubtedly put a lot of stress on you and your business. So by
simply putting procedures in place that you adhere to with every
client, you can potentially reduce your risk.
- Work to a systematic process. Stick to a detailed brief that is
agreed by all parties.
- Work smart; work tidy. Avoid damages claims by minimising
physical risks in the workplace.
- Manage expectations. Ensure your clients know what's expected
of the relationship. Don't raise false expectations.
Choose the right professional liability insurance provider
Choosing the right professional liability insurance provider can
sometimes be a simple case of finding one who genuinely understands
the kinds of risks attached to your profession. So look for
providers who specifically cite your area of expertise. If they
know their stuff they'll be able to offer you professional
liability insurance that meets all your requirements and affords an
appropriate level of cover.
The right professional liability insurance won't leave any
margin of doubt. It will be tailor-made for your profession and
assure you of absolute protection in the event of any client making
a claim, leaving you to get on with your working life.