Professional Liability Mistakes To Avoid That Could Hurt Your Company
Professional liability mistakes could hurt your company if you do not keep an eye on potential hazards that could damage your entity. Keeping your company running requires you to wear multiple hats and juggle various responsibilities to avoid. Simply staying afloat may be a challenge — especially if you fall prey to some of the most common business mistakes. Many decisions could harm your company and cause unnecessary professional liability to emerge. In turn, this can lead to litigation and other serious consequences.
Professional Liability Mistakes to Avoid
Learn how to identify and avoid mistakes before they impact your business.
Failure To Identify Professional Liability
One of the biggest mistakes a business owner can make is identifying professional liability. Professional liability refers to any action by a company representative, including employees, that may constitute negligence. For example, if your company offers consulting services and gives erroneous advice to a client, this is a professional liability. It’s essential to prevent these incidents and shield your company from risk by investing in an E&O insurance policy.
Subpar Customer Service
Bad customer service can be disastrous for your company. Providing your clients with poor customer service is a professional liability, even if it isn’t necessarily legal. Subpar service may include a lack of communication, dismissal of clients’ concerns, or simply a bad attitude during interactions. Companies in all industries need to invest in excellent service for their clients. It means treating them respectfully, providing prompt communication, and seeking solutions that meet their needs.
Ineffective Hiring Process
Your employees are the backbone of your company. If you don’t have a good screening process and hiring protocol, you’re likely to see your business struggle. This mistake can also be a form of professional liability if you hire unqualified candidates. Instead, invest ample time and resources into recruiting candidates who are indeed an asset to your team — even for lower-level positions. It will give your company the foundation it needs to grow and thrive. More importantly, it will likely increase retention, which will decrease expenses.
Lack of a Specific Mission
Too many businesses are flying blind regarding an overarching vision or objective. You will eventually flounder if your company does not have a specific mission. Avoid this mistake by developing a comprehensive mission statement identifying your company’s purpose, goals, and ideals. Articulating these ideas will help you remain focused while cultivating a culture of positivity. Identifying your mission statement will also help you minimize professional liability by establishing clear standards to guide your company’s work.
Insufficient Professional Liability Coverage
Unfortunately, even the most substantial companies in the world can be susceptible to professional liability. You cannot guarantee that your staff will avoid errors, and these errors can be costly if you do not have the right professional liability insurance on your side. Coverage such as an E&O insurance policy can help cover the expenses associated with litigation if allegations of negligence emerge. Failure to carry this insurance — or having insufficient coverage — is one of the biggest mistakes a business owner can make.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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Phone: (860) 774-8549
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm
Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm