When a client believes that the professional service or advice you provided caused them harm, you may be held liable for the damages. For instance, an accountant may be responsible for losses caused by bookkeeping errors, and a contractor could be sued for using costly, unapproved building materials. Fortunately, you can invest in professional liability insurance to protect yourself while lowering your liability risks in the following ways.

How Can You Lower Your Professional Liability?

1. Address Errors Early On

When mistakes happen, it's best to bring them up as soon as possible. Although being honest could cause some tension with your client, recognizing the matter right away will demonstrate that you're taking steps to prevent errors from spiraling to a point where they lead to financial harm.

2. Avoid Jobs Outside of Your Expertise

It can be tempting to take on high-paying or challenging projects, but if you don't have the skills or resources to handle the job, you should pass. Taking on more than you're qualified for and causing damages in the process could be considered negligent. Instead, be honest about your capabilities and refer the client to a specialist who may be more appropriate.

3. Establish Clear Guidelines for Feedback

As you start a new project with a client, set clear rules in the contract that indicate how issues should be addressed. Specifically, your client should know how they can submit feedback and how you approach the resolution process.  To minimize the risk of being accused of negligence, it’s also a good idea to get the client’s approval at various stages of the job.

4. Research Clients

If you're working with a new client, consider researching their legal history and past partnerships to see if they have a history of claiming damages. While some claims may be legitimate, those who have a long record of suing professionals may be too risky for you to work with.

5. Handle Deadlines Strategically

Many errors can occur if you're rushing to complete a project before a deadline. To ensure you have ample time to produce quality results, start the project as early as possible and provide the client with a realistic and feasible timeline. If roadblocks slow the process down, work with the client to extend the deadline and explain that it's the best way to avoid rush-related issues.

Offering comprehensive business insurance solutions in Geneseo and Livonia, NY, Chanler Agency, Inc. Insurance will introduce you to coverage options that fit the specific risks of your work—including those related to professional liability. They can also connect you with affordable insurance policies to cover workers compensation and commercial property. Visit this independent insurance agency online to learn more about their personalized services, or call (585) 243-5520 to talk with a friendly agent.