The most expensive legal advice you'll ever get is the advice you seek after you've been sued!

In the building industry, legal risk is everywhere from defects, contracts, proportionate liability and of course disputes.

And when things go wrong, it’s not just the claim. It’s the skyrocketing PI premiums, narrowed cover, higher deductibles and reputational damage that can cripple a business.

The problem?

Too many businesses wait until they’re in litigation to then get decent legal risk management advice on their professional activities. By then, the damage is done.

Here’s the message, if you’re spending over $50,000 a year on insurance premiums and many businesses in the building sector spend well over $100,000 per annum on a professional indemnity policy, you need to be getting legal risk advice - not just a policy ‘off the shelf’ from a broker.

Reviewing your professional service client contract, who you contract with and how your documents, marketing and website represent your business is critical to not just avoid claims and minimise loss when something does go wrong but to also help your broker negotiate at renewal.

That’s why smart building professionals are being proactive in their approach to legal risk management using services like Fractional General Counsel to:

• Tighten contracts

• Keep insurers happy (and premiums under control)

• Spot problems before they become claims

Insurance is essential. But it’s not a plan. A real plan is having the right advice in place before trouble hits.

If you’re in building or construction and haven’t had your legal risks reviewed, ask yourself: can you afford to wait until the next renewal or the next proceeding?

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

Tagged as:

• insurance law