Strategies For Reducing Professional Liability Risks
How To Minimize Risks
It is important to understand the tremendous risks attorneys and other professionals have when it comes to providing professional services. Almost any business can find itself facing a liability lawsuit. A Miscellaneous Professional Liability lawsuit can put the owner’s and other executive’s personal assets at risk including homes, cars, and other possessions. One simple mistake could cause financial devastation, as well as end your professional career.
It is important to document communications with clients and others to preserve important information. There are three forms of documentation that a firm should pay particular attention to when developing the firm’s standard procedures:
Contracts or agreements–It is important to have clear expectations in writing as to the services agreed upon.
Certified receipt transmissions–There will be occasions when documents and other records need to be delivered with a receipt. This is the best method of confirming that the documents were delivered to the intended individual.
Memos to file–It is critical that attorneys and other professionals keep memos and file notes. We always recommend that meeting notes be maintained and copies delivered to all parties in attendance at the meeting.
Professional Liability Insurance is sometimes called Errors and Omissions (E&O) coverage. Claims come from errors or omissions in the performance of professional services. Companies that perform professional services for a fee are exposed to E & O claims. Often claims result from overlooking a critical piece of information, misstating a fact, misunderstandings, forgetting to do something, or misplacing something.
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This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.