Professional liability coverage
– also known as errors and omissions, or malpractice when it relates to bodily harm – responds to claims that arise from acts of professional negligence. Professional negligence may arise for example from:
In addition to having insurance, it’s important for businesses with professional liability exposures to implement risk management best practices to reduce or mitigate risk.
Professional liability coverage is designed to cover the costs of an error or of an action that was not undertaken in circumstances where it should have been performed. Real estate agencies, consulting firms, hospitals, engineering firms, law firms, businesses that employ individuals who give advice and professional sole proprietors, to name a few, may consider managing their liability risks in several ways:
Use a client intake form. A formal approach to establishing a relationship between a service provider and client may help prevent conflicts of interest.
Questions to consider include:
Review any available information about previous suppliers who have worked with the potential client. Things to consider include:
Collect and review as much information as possible when you are evaluating a potential client. In a working agreement or contract, you may wish to include elements such as:
For industry-specific tips and guidance on liability risk best practices, give us a call at 604.227.1098
Thank you to Insurance Bureau of Canada for this information. To view original article, click here