Professional Liability - Risk Management Providing professional advice and services opens the door to potential risk. 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:Financial Loss. Your corporation provides engineering advice. One of your certified professional engineers designs the structural support system for balconies in a new condominium. Shortly after construction, glass from balconies falls to the ground. Your client and the construction firm that followed your engineer’s advice demand compensation from your organization to cover the cost of reconstructing the support system.Bodily Injury. Your clinic employs licensed professionals – including registered nurses, therapists and physicians. An individual sues a chiropractor who works in your facility after a treatment. The injured person names your clinic and employees in a medical malpractice lawsuit. 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. Managing Professional RisksProfessional 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:What are the clients instructionsAre the new client’s goals reasonable and attainableWhat is the fee or billing structureIs your business adequately staffed to handle the project?Did any potential red flags come up during the interview and information gathering stages?Review any available information about previous suppliers who have worked with the potential client. Things to consider include:Does the client have a reputation for managing successful long-term relationships with vendors?What reasons does the client give for changing suppliers?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:Proper identificationScope of workFee structureThe responsibilities expected of your organization as well as those expected from your client.For industry-specific tips and guidance on liability risk best practices, contact your insurance representative.Sources: Managing and Insuring Professional Liability Risks Emergency Preparedness for Business Life can throw its share of curveballs so it’s important to be ready for anything. And yet, a large number of small businesses don’t have an emergency preparedness plan in place. This guide is intended to help you safeguard your business by preparing for the unexpected.Commercial Insurance for Small Business – Q&AQuestion to ask your insurance representative.Business Insurance and YouManaging risk is an essential part of every business, large or small. Theft, fire, vandalism, riots: A host of perils could come your way and you need to be ready for them. Let’s look at some of the basic steps you can take. Useful LinksInsurance VendorsInsurance is a significant financial investment so it’s worthwhile to learn about your buying options. Cost ControlThere are many ways you can control insurance costs and lower your premium. Shop around and ask your insurance representative for more information about the options below and other savings opportunities.