An Overview Of Professional Negligence Insurance
The insurance coverage you need for your business depends on the nature of your business. Most businesses need multiple lines of insurance. For example, businesses that offer professional services need professional negligence insurance. Below is a brief overview of this form of insurance.
Difference From Ordinary Negligence
Ordinary negligence is a failure to act as a reasonable person would act under similar circumstances. Professional negligence refers to negligence in the course of a professional service. The law will compare the professional's conduct with those of a comparable professional under similar circumstances.
Anyone can face ordinary negligence accusations, but only professionals can face professional negligence claims. Thus, professionals can face both ordinary and professional negligence claims.
Examples of Professional Negligence
Any professional who fails in their professional duties can be guilty of professional negligence. Here are examples of cases that can trigger professional negligence claims:
- An intoxicated doctor who fails to diagnose a medical condition
- An accountant who makes an error and causes their client to lose money
- An IT (information technology) engineer who installs outdated software that allows cybercriminals to attack a company's website
- A careless lawyer who gives bad advice and causes their client to lose a major contract
The above are just a few examples — negligence exists in all professions. What matters is that the professional failed their client in the line of duty.
Prevention Tips
Professionals should take reasonable steps to avoid professional negligence. Here are some tips to help you avoid professional negligence:
- Don't give advice you are not qualified to give
- Stay current, for example, via continuing education, with your industry's practices
- Don't discharge your professional duties while intoxicated
- Scrutinize all contracts before you sign them
- Document all communications with your client
In case a client is not satisfied with your services, engage with them as soon as possible, and remedy the situation. In most cases, you can avoid legal claims if you act fast.
The Need for Insurance
Despite your best efforts, you cannot rule out professional negligence accusations for the rest of your career. Some people might even accuse you of professional negligence mistakenly. Unfortunately, even wrong accusations can cost you money in the form of legal defense and damage control.
Purchase professional negligence insurance to protect you from such claims. The insurance can help pay for legal costs, cover witness fees, and even pay for settlements.
Professional negligence overage is usually inexpensive. A business insurance agent can assess your business and help you purchase inexpensive coverage.
To learn more about business insurance and professional negligence, reach out to a local insurance provider.
