How Businesses Can Minimize Risks
It is important to understand the tremendous risks many 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 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 files and communications to preserve important contacts with clients and others. There are three forms of documentation that a firm should pay particular attention to when developing standard procedures:
Contracts or agreements – it is important to have clear expectations in writing. These agreements are a good way to make sure client’s expectations are met.
Certified receipt transmissions – There will be occasions where documents and other records need to be delivered with a receipt. This is the best method of confirming the documents are delivered to the intended individual.
Memos to file – It is critical that business professionals keep memos and file notes. We always recommend 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.