If you offer a professional service, chances are you're selling your knowledge. But what happens if your advice isn't right? We look at the risks involved in giving advice for a living.
Mistakes happen .... some are small, others can have devastating consequences.
If your business is subject to claims of negligence, the costs can be financially crippling and an expensive lawsuit between you and your client could result.
However, the negligence ruling against the GP was later quashed, which serves to highlight just how important it is to have PI insurance in place so that you can adequately defend yourself in court.
“With so much on the line, it's vital that your business is adequately protected against the pitfalls that come with selling your knowledge ”
Of course, just because your business has survived the courts and the subsequent reputational fallout doesn't mean you're guaranteed to continue in your chosen field of work.
If you've provided particularly negligent advice and the courts find you guilty, your relevant regulator, peak industry body or franchisor may either suspend or ban you from operating.
For example, in the first six months of this year ASIC removed or restricted 68 people and/or companies from providing financial services or credit.
So how do you protect yourself against this situation? Once again, having an experienced legal team going in to bat for you can help.
It's also important in many cases to have PI insurance full stop.Some regulatory agencies, such as the Australian Health Practitioner Regulation Agency, require all health practitioners who undertake any form of practice to have PI arrangements in place.
The final word
With so much on the line, it's vital that your business is adequately protected against the pitfalls that come with selling your knowledge.
That's why it's important to seek advice from a professional insurance broker who also offers advice on a daily basis.
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