Professional Services: Protect your Business and your Clients
4 minute read
What is one trait that those in the professional sector have in common? Regardless of whether you’re an accountant, engineer, lawyer or consultant, the primary source of revenue ultimately stems from providing professional advice in your area of expertise.
However, with this comes the associated risks of providing advice that may cause loss or harm to your client which can inadvertently result in legal action being taken against you and your professional firm.
Overview:
This liability can come in different forms depending on the nature of work.
Here are three hypothetical situations that you would like to avoid as an individual in the professional sector!
Engineering firm
Your company has been contracted to design the building of a residence. However, there were some errors on the blueprint and the completion got delayed as a result. The developer decides to take legal action against you due to this oversight.
Such a situation has also become one of the reasons why certain projects require a professional indemnity insurance to be bought before a project can be accepted.
Software consultancy firm
You’re a small Customer Relationship Management (CRM) software company that provides advice to customers on how it should be used for operations. Being a fully digital firm, communication and operations are done mostly online.
Due to a programming error, the CRM software starts deleting important documents, with the clients being unable to retrieve them back. The matter is made even worse by a leak in sensitive personal information.
For your negligence, the client is able to take legal action against your company.
Law firm
A new lawyer has just gone into practice and is dealing with his first few cases. Unfortunately, he has been unsuccessful in winning these cases, making his client extremely dissatisfied with his approach.
Tensions rise, erupting in a verbal altercation that results in harsh words being exchanged against the client. Ironically, the client decides to file a lawsuit for defamation against the lawyer which the lawyer now has to represent himself to win this case.
Wrap up
The aforementioned are merely some exaggerated examples of the legal liabilities faced by the firms in the professional sector. While they may appear to seem far fetched, similar situations can still happen within the same parameters.
To assess and find out how else you can strengthen your cyber security, download our free insurance checklist here!
So how can you prevent these scenarios from happening to you?
A professional indemnity insurance is what you will need to indemnify the above liabilities. Some may even cover IP infringements and liability arising from joint ventures.
Sleek can help out in such instances. Reach out to us if you would like to be covered and our team of insurance specialists will be in touch with you.
What now?
Well it’s simple! If you have any questions about getting your business started, get them all answered by having a free consultation call with our experts.
