Two Ways to Reduce Claims on Your PLI
Though you should never substitute preventative measures for professional liability insurance, there are some things to do that reduce your risk of a professional liability lawsuit. A risk management approach that preemptively tries to avoid claims is your best strategy in preventing claims.
Keep Good Documentation
There are a number of reasons why a company or individual would file suit against your business, and the worst thing you can do is not have the paperwork needed to defend against the claim. While a piece of paper can’t keep someone from trying to sue you, there is a greater chance that you can disprove or counter their claim with the right documentation. As a professional liability lawsuit example of prevention, thorough and well-organized documentation may be the stronger asset.
Keep Proactive Communication
By staying in touch with your client over both the good and the bad of their account, you can eliminate some of the claims that stem from neglect or breach of contract allegations. Reaching out as soon as you know a product may be delayed or the budget isn’t going to be enough for the product can give you time to work out a new solution with the client. They can adjust their expectations and you can both determine resolution outside of court.
These two areas are key in reducing the possibility of a liability lawsuit. Though effective, don’t opt for these and leave out professional liability insurance.