Some Ways to Help Avoid Professional Liability Claims 

By Terri Goldstein

As a professional you are susceptible to legal actions against you for negligent acts, mistakes or other errors and omissions while providing professional services.  Insurance is one tool used to protect yourself and your business from financial loss.  A preferred approach is to combine good practices and methods along with insurance.  The following are some suggestions professionals use to help avoid or limit their exposure to loss:

·         Work with a written contract that defines expectations, and outlines your responsibilities, the scope of services to be provided and any applicable terms and conditions.  Do not guarantee results and promise only what you truly feel you can deliver.  Give yourself reasonable time to meet expectations.  Your liability goes back to what you promise you will do.

·         Do not work outside your area of expertise.  (i.e. if you are not a tax specialist do not give tax advice) If needed, consult with reputable, properly licensed or credentialed specialists in areas such as law, accounting, medicine and real estate.

·         Performance of “due diligence” is also required when hiring employees or independent contractors. Check referral reputations, education, training, credentials and so forth.

·         Standardize policies and procedures within your office.  Use written job descriptions which identify employees’/contractors’ scope of authority, develop procedures for handling receivables, appointments, complaints and other office processes.  Apply policies and procedures consistently among clients.

·         Use written documentation of sessions and other meetings.  Log dates, times and make notes of important points, summarize client’s needs, expectations and agreed to responsibilities.  Confirm these with clients and ask for written acknowledgement of important items.

·         You have a duty to stay fully informed in your profession and to apply this knowledge as appropriate in working with each client.  Know and follow applicable codes of ethics.  Read related professional journals, be aware of any laws which may apply in the areas you are working and stay current with new practices in your field.

·         Treat clients and others with respect. Identify their needs and concerns and keep this paramount in your professional conduct.

Note:  Look for further handouts from the International Consortia of Business Coaches-Loomis Insurance Program   http//www.i-cbc.com  .  Further  topics include causes of errors and omissions claims; why purchase professional liability insurance, comparing policy terms.  E-mail questions and concerns regarding this article to  Terri Goldstein.