Reducing your exposure to professional indemnity claims

There are many factors for professional firms to consider to improve risk management within their organisation but here are some key suggestions for reducing your exposure to professional indemnity claims.

  1. Confirm all new instructions in writing and keep the client abreast of the costs. Make it clear what you will advise on and what you won’t.
  2. Record and follow up all advice in writing
  3. Keep clear notes of all meetings and conversations you have with your clients
  4. Ensure your own diary system is kept up to date and have a centralised diary so that if an employee is absent their work will be picked up. Missed deadlines are still the cause of many professional indemnity claims.
  5. Don’t advise on subjects you are not familiar with
  6. Don’t get too close to your clients as relationships quickly fall apart if problems arise. Likewise, ensure you vet all new clients.
  7. Know your professional indemnity policy. Be aware of your claims reporting obligations under the policy and make sure all staff are aware of their duty to report potential claims and circumstances which may give rise to a claim.
  8. Make sure that the activities you carry out are covered by your professional indemnity policy. If you are engaging in different areas of business or dealing with clients in foreign jurisdictions make sure that your professional indemnity policy will respond if a claim is made against you.

For industry specific risk management advice, please download one of our risk management guides from the right hand side of this page.

To find out more about how risk management can help your business please call 0117 929 3344 or email enquiry.professions@bluefingroup.co.uk, alternatively arrange a meeting with one of our risk management specialists.