Professional indemnity insurance claims aren't, as is often assumed, solely the expertise of people who churn out work containing technical deficiencies. They extend to cover things in that consultants probably did nothing wrong. However, the client made a loss and set to attack all potential sources of compensation, or the contractor made errors and subsequently went into liquidation; or there were therefore many parties involved, all with different versions of events, that criticism of the consultant was an inevitability.
All consultants, thus, would like to safeguard their assets against claims. This is partly achieved by maintaining professional indemnity insurance cowl but solely if the terms of coverage are appropriate and also the limit of indemnity is adequate.
All practices, even those with clean claims records, should review their limit of indemnity as a matter of course at every renewal and increase it if appropriate. The incidence of claims exceeding the limit of indemnity is already abundant over it used to be and could be a trend which is set to continue. Consultants whose liability exceeds their insurance should fund the balance out of their assets to the extent they can.
Effective risk management is as abundant concerning preventing spurious claims as it's concerning avoiding genuine errors.
The task of any skilled person is not solely to supply sound advice based mostly on his technical data and experience however conjointly to communicate it effectively - good communication is what makes the distinction between producing a resolution and providing a service.
Sometimes the consultant has got to be prepared to travel beyond communicating advice needed of him under his appointment, as disputes may arise through others within the team failing to speak as effectively as they might. While it is true that consultants create issues by exceeding their transient, in following there are circumstances in which doing this is the most effective approach to guard against spurious allegations if the preventable is allowed to deteriorate into the inevitable.
It should be attainable to speak the relevant message in such a method as to achieve this while not materially affecting the consultant's exposure to liability.
A rigorously worded letter would possibly flag a potential issue to the consumer and simply suggest, with appropriate disclaimers and qualifications, that the consumer take additional advice - that the consultant himself might give for an extra fee, or which the consumer would possibly procure from elsewhere. Such cases may represent circumstances which might offer rise to a professional indemnity insurance claim and which ought to thus be notified to your insurers. Either approach, our specialist claims brokers are on the market to offer a recommendation.