What is... Professional Duty of Care

As per our earlier blog posting ‘Professional Indemnity Insurance 101’ one of the ways that a Professional Indemnity Insurance claim can be brought against you is through a breach of the professional duty of care that you owe to your client. So what is your professional duty of care?

Anybody who holds themselves out to be a professional has a duty under the law to exercise proper skill and care when they provide professional services. If a professional does not exercise a reasonable degree of skill and care and it results in a loss then it may result in a professional indemnity claim being made against you. Examples of this are as follows:

  • Engineering errors;

  • Inappropriate financial advice from accountants or financial planners;

  • Misleading or deceptive conduct from advice given by a professional;

  • An accounting error from your bookkeeper or accountant which has resulted in a financial loss;

  • A designer failing to meet the brief of their client;

  • Incorrect property valuations.

It is important to stress that allegations of the breach of duty of care can be either real (beyond dispute) or simply alleged by the claimant. If the activities are covered by the insurance policy then the Professional Indemnity insurer will start the process of the defence for you.

If you have any further questions please don’t hesitate in contacting us.

Thank you for reading!

#ProfessionalIndemnity #ColneRiskAdvisory #Insurance

Featured Posts
Recent Posts
Archive
Search By Tags
No tags yet.
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Suite 10

303 Barrenjoey Road

Newport

NSW     2106

T: 1300 395 755

M. 0410 677 515

  • Twitter Social Icon
  • Facebook Social Icon
  • LinkedIn Social Icon

© 2023 by Business Solutios. Proudly created with Wix.com

 

 

Authorised Representative of Oracle Group (Australia) Pty Ltd (AFSL 363610)