8 Ways to Reduce Professional Liability Mistakes
Professional liability is a part of running a business, and every owner should prepare to deal with it. As experienced and skilled as your team may be, mistakes are always risky. Unfortunately, errors can lead to litigation, which can be expensive. It can also become time-consuming, even if you win. To avoid this drain on your resources and harm to your reputation, take steps to reduce professional liability risks.
Best Ways to Reduce Professional Liability Errors
Your business will not always make the perfect move. However, there are still ways to prevent careless errors. Find out how with these valuable tips.
Get Professional Liability Insurance
Having the right insurance saves you money and allows you to place all your efforts on running your business. The insurance company handles all the intricacies of fighting a lawsuit:
- Provides legal counsel
- Tracks deadlines
- Fills out and organizes paperwork
Commercial liability insurance covers a variety of scenarios:
- General professional misconduct
- Negligence
- Errors
- Missed deadlines
- Breach of contract
Create a Risk Management Plan
While having insurance helps after the fact, it’s better to learn about common professional liability mistakes and how to avoid them. A risk management program creates a formal plan to reduce errors, making it an essential tool to protect your business. Remember that the job isn’t over once you have a risk management plan — you should regularly review and update it.
Train Staff
Proper training can limit professional liability errors by ensuring employees have the tools to deliver a high-quality service or product. Unfortunately, some businesses neglect training for “more important” matters, such as handling a high volume of requests. Companies should prioritize training by allocating designated time, setting deadlines for completion, and tracking employee progress.
Have a Worst-Scenario Plan
You may still make mistakes even with ample training and a risk management plan. Your company should formulate a response strategy well before any errors occur, allowing you to take control of the situation rather than react to it.
Keep a Written Record
Written agreements between businesses, clients, and employees can significantly reduce professional liability risks. An oral agreement has no record, so there’s no way to prove its existence should the client later sue for breach of contract. Emails, letters, and contracts create a paper trail to prove your company acted in good faith.
Communicate With Clients
Along this vein, businesses should be transparent with clients. Clear communication ensures that each party adheres to its side of the agreement, minimizing the risk of error or perceived deception. If there’s any uncertainty about what the client wants, you should immediately reach out in writing.
Set Realistic Expectations
Setting realistic expectations at the start of a professional relationship is critical. Under-promise and over-deliver to make a great impression on your clients. If the client wants something you may not be able to do, be completely honest and review the client’s options.
Identify Professional Liability Risks
You should identify the professional liability risks of a project before agreeing to it. Sometimes, the stakes aren’t worth the reward, and you’re better off turning down the offer to protect your finances, reputation, and employees. If you don’t have a dedicated risk management team, you can hire a third party to analyze the possible risks and the likelihood they will cause issues.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm
Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm