Tips for good risk management
Financial Lines

Claims can arise not only from simple mistakes or miscalculations but also from areas such as lack of supervision in the business or a breakdown of communication between you and your client. In Chubb’s experience, the chances of a professional negligence claim being brought against you can be minimised by following some simple guidelines for managing risk.

• Have clear and concise pre-agreed contract terms between both you and your client, and between you and any sub-consultants or sub-contractors you may employ
• Vet both your clients and contractors for their professionalism and creditworthiness
• Try to limit your liability in contracts – be clear about the services you are providing and seek legal advice on any non-standard contracts into which you are being asked to enter
• Maintain good records, files, telephone and meeting notes and monitor diary dates. Make sure you have adequate back-up
• Vet new staff and always obtain appropriate written references
• Train staff in policies and procedures so they adopt your company ethics and practices
• Establish systems of checks on the work carried out by staff, particularly where money is handled
• If business is transacted or advice offered over the internet or bulletin boards, chat rooms or discussion sites that are available to third parties, web site maintenance is essential. You need adequate protection, with legal input and suitable security in place
• Ensure you have procedures in place for the notification of potential claims, which all staff and principals should follow
  

If a claim does arise, share the details with all staff so that the experience can be learnt from in the future.