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

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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