How to Minimize Professional Liability Risk


One of the biggest challenges professionals face is when their very livelihood is threatened by litigation alleging professional malpractice. Unfortunately, the risk of litigation is present in every company, no matter the industry, size, or location. Fortunately, there are a few practical steps that can be taken to reduce your risk of litigation, which means your business is better protected.


Check in with clients. It sounds obvious, but better communication can prevent many professional liability lawsuits. By checking in with clients, you’ll know more quickly if they’re unsatisfied with your service or business. Ideally, clients would come to you with these issues, but you can’t always guarantee they will. It’s up to you to keep the lines of communication open.


Be honest. It is often difficult to own up to your mistakes because you feel it might diminish your professional liability in the eyes of the client. However, you are generally not liable for mistakes unless the party who would be hurt by them decides to hold you accountable in some fashion. Remaining professional and admitting error can reduce the likelihood that you will be sued since clients are less likely to do so if they like and respect you.


Document everything. The biggest mistake that small businesses make is failing to complete documentation related to a claim. Although a small business owner has a lot to juggle, paperwork should never fall by the wayside. Good recordkeeping can help you to defend your company and can even call off a lawsuit. You may want to use:

  • Written contracts
  • Complaint resolution forms
  • Confirmation emails


At Kneller Agency, we believe that you shouldn’t have to compromise your business’s future for anything. With our reliable commercial insurance policies, your business will stay safe throughout disasters, accidents, and more! Visit us today in New York to get started on your tailored coverage.

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