It is important to understand the tremendous risks attorneys and other professionals have when it comes to providing professional services. Almost any business can find itself facing a liability lawsuit. A Miscellaneous Professional Liability lawsuit can put the owner’s and other executive’s personal assets at risk including homes, cars, and other possessions. One simple mistake could cause financial devastation, as well as end your professional career.
For businesses, it is important to document communications with clients and others to preserve important information. There are three forms of documentation that a firm should pay particular attention to when developing the firm’s standard procedures:
Contracts or agreements--It is important to have clear expectations in writing as to the services agreed upon.
Certified receipt transmissions--There will be occasions when documents and other records need to be delivered with a receipt. This is the best method of confirming that the documents were delivered to the intended individual.
Memos to file--It is critical that attorneys and other professionals keep memos and file notes. We always recommend that meeting notes be maintained and copies delivered to all parties in attendance at the meeting.
Professional Liability Insurance is sometimes called Errors and Omissions (E&O) coverage. Claims come from errors or omissions in the performance of professional services. Companies that perform professional services for a fee are exposed to E & O claims. Often claims result from overlooking a critical piece of information, misstating a fact, misunderstandings, forgetting to do something, or misplacing something.