Professional Liability – Lessons from the Front

Over the years I’ve advised clients in Australia, London, Asia and New Zealand on professional and director liability claims. Mostly after the event has occurred.

As my career has progressed I spend nearly as much of my time advising clients how to avoid the event in the first place.

One thing I’ve learned across all jurisdictions is this:

Most major disputes could have been prevented with early and proactive risk management.

Whether it’s a director signing off on a decision without full disclosure, or a professional giving advice without appropriate warnings, the real cost doesn’t come from the mistake itself, but from the fallout when clients, regulators and shareholders take action.

A free tip:

If you’re a professional or company director, get into the habit of asking two simple questions before you act:

• What is the potential financial impact of this decision or advice?

• What are the risks and have I warned of these?

Those two steps can reduce your exposure by more than any insurance policy ever could.

As an insurance litigator who’s seen the worst-case scenarios play out internationally, I can say with confidence, prevention beats defence every time.

If you or someone you know is navigating professional liability, director disputes, or complex insurance claims, I’m always open to a conversation.

Referrals are the greatest compliment I can receive.

Our team is growing - many know us for insurance claims and litigation in the building and financial sector, but reach out to us for our legal risk management preventative advice package:

1. Review and re-draft your professional service contract with a focus on simplicity and legal risk at dovetails with insurance - this can even help with your PI renewal negotiations;

2. A review of the representations made on your website and in marketing materials;

3. A review of your professional indemnity and directors’ and officers’ liability insurance policy wordings with an emphasis on the key risk events in your industry sector - this could help with re-drafting key exclusion clauses before a claim occurs or selecting the right sub-limit increases or extension add on’s that really matter in your sector.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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• professional liability