Professional Indemnity FAQ

If you are being sued for Negligence

Why would someone want to make a Professional Indemnity Claim against you?

 

If a client suffer some harm or loss as a result of a Professional’s carelessness, what could they do about it?

They can sue you for negligence and try to get some compensation for the harm or loss that they have suffered.

 

Is a claim worth the effort?

The claimant would need to obtain Legal advice to determine:

  • whether there is any legal basis to a claim
  • who is the person to be sued
  • the chances of success
  • the costs involved in going to court e.g. legal costs, court fees and specialist reports

In defending a matter, the court might say that nobody was legally at fault  because they did everything needed to satisfy their standard of care despite their injuries or economic loss.

Even though your mistake causes an injury or loss, the court might sometimes find that this mistake was reasonable and that you did not breach a standard of care. People do make mistakes, and these are allowed so long as they are reasonable mistakes.

For this reason, your insurers will hire highly skilled and competent lawyers to help defend the matter if you are being sued for negligence because these things can be complicated.

  

What would they have to prove to win a negligence case in court?

They would have to demonstrate three things:

  • That the person was owed a duty of care by you ;
  • That you did something or failed to do something that a reasonable person in the same circumstances would not have done;
  • That they suffered some harm or loss because of what you did or didn't do.

If it is due to you being sued for personal injury, the claimant will need to have their injury assessed by a doctor before issuing any proceedings to establish what level of impairment their injury has reached. They cannot get compensation for any injuries unless they have a certain level of impairment. This is something which a doctor decides.

 

Are these things easy to prove in court?

Sometimes they can be. Often the most difficult thing to show is what would be

considered reasonable in the circumstances. People can have very different ideas about what is reasonable, and if being sued by someone for negligence, your defence will be that what you did, in the circumstances, were quite reasonable.

It is possible too that they contributed to the harm and loss they suffered because of something they did or didn’t do.

 

How does the court decide who is right?

In trying to decide who is right and who is wrong on these sorts of issues, the court will take a range of things into account, such as:

  • Decisions that other courts have made on the same sorts of issues
  • Professional standards that might apply in the situation
  • Legislation (laws made by the government) that might state what is expected in the circumstances
  • The court's view of what the ordinary person in the community is likely to think about what is reasonable in the circumstances.

All of these things are open to interpretation and if you are being sued by someone for negligence, these things will need to be defended as strongly as possible.

This is one reason why it is important to be insured for these risks and receive the legal defence if you are being sued for negligence. 

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Services Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 5 March 2018.

Fundamentally, there is no difference to you, except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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