If you provide a professional service, your knowledge is likely what you sell. But what happens if your advice isn’t correct? Consequences are a sure thing for every mistake made.
There are a lot of factors that will go into how badly this bad advice will affect your businesses. Sometimes these disputes can be solved with an apology, and other legal action will be required.
So, how can you protect your businesses when these matters arise? Read on to find out.
Have A Disclaimer
Let it be clearly stated on your website through the use of a disclaimer, your communications and on any contracts that consumers and clients are totally responsible for the decision they make based on any advice, financial or otherwise, provided on them by your business. This is sometimes enough to help your case when claims are made because while you can provide advice to
Usually, these stop any legal action from coming against you as you have made it very clear that you are providing advice only, not forcing anyone to take action base o that advice.
Legal battles
Mistakes are inevitable. Some are minor, and others can have damaging repercussions. If your business faces negligence claims, the costs can be financially damning, and a costly lawsuit could result. This is where professional indemnity insurance can play a vital role in your business. It is crucial if you have a business that requires providing advice that you have a professional indemnity policy for your business, and the cost of any legal suit will be covered.
Public Relations
Of course, just because you win a legal battle doesn’t mean you’re going to win in the public opinion court. If your good name is dragged in the courts – and then through the media – there is a chance that your current and potential clients will know about it.
So how are you protecting your business? Are you looking to fight the case and clearing your name? Or are you looking to settle early, reduce exposure, but appear guilty to outsiders?
A good PR team will be able to help you repair your brand’s reputation following a legal crisis and help you maintain your customer’s favour or regain any lost trust in your company.
Regulatory Intervention
Of course, just because your business has survived before the courts and the subsequent reputational fallout does not mean that you are guaranteed to continue in your chosen field of work. You may now be subject to review by the relevant industry authorities or regulators, so it is important that you are also prepared for that.
So how are you protecting yourself from this?
Again, having an experienced legal team to fight for you can help. Usually, the only way you protect yourself from all the consequences in the courts is having a strong legal team and an ironclad professional indemnity insurance policy top back you up.
With so much at stake, it’s essential that you ensure your business is protected against the dangers associated with the sale of your knowledge.
