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What happens when a client threatens to sue?
Useful guidelines for Complementary Therapists
Gavin Mitchell, Managing Director at Towergate Professional Risks, provide some answers.
Have you ever thought about what would happen if a client or third party alleged that you had not acted professionally and threatened to sue you? The financial consequences could be significant, not to mention the stress and possible harm to your professional reputation.
Complementary Therapy Practitioners much like any other profession are increasingly vulnerable to claims for compensation from clients and other third parties. For a sole trader or small business, the consequences could be very serious, as claims can run in to many thousands of pounds.
Professional Indemnity Insurance gives practitioners a way of protecting themselves in the event that they should be sued as a result of their business activities.
What does it cover?
Professional Liability Insurance is designed to cover as broad a range as possible of ‘civil liability’ – in other words, most of the things you could get sued for as a result of your business activities.
Typically, it includes cover for Professional Indemnity, Public Liability, Products Liability and Libel and Slander.
What exactly does each of these sections cover?
Professional Indemnity relates to the advisory or therapeutic element of your work. For example, a client might allege that you have carried out inappropriate treatment with them, or failed to carry out necessary actions, and that they have suffered a financial loss or injury as a result.
Public Liability relates to any other type of loss, injury, or damage to property or individual arising out of your business activities.
These could be specific to the treatment, such as an injury following massage treatment, or more general, such as a client tripping over a treatment bag you had left lying around.
If you sell any products to your clients to complement their treatment, such as supplements and vitamins, a relaxation CD or a book, you could also be liable for any losses occurring as a result of the use of these products, even if you did not manufacture or produce them yourself. The Products Liability section covers this type of claim.
The final section then, is Libel & Slander. To many, this may seem like a strange type of insurance cover for complementary therapist to have. However, the complementary medical profession is a very collaborative one. Many experienced practitioners will share their expertise with others and local association meetings and even at larger trade shows and exhibitions. They might even publish their thoughts in newsletters, journals, websites, blogs or podcasts. Before they know it, some practitioners could find their words and opinions are seen by thousands of people worldwide. If you shared your thoughts with other practitioners and inadvertently made a comment that another party felt was defamatory against them, they may consider taking action against you for defamation.
You now know what is covered, but you may ask yourself ‘do I really need it?’
Professional Liability insurance is not currently a legal requirement. However, a number of professional associations strongly recommend it. Claims for compensation from clients are becoming more and more common in an age of ‘no win, no fee’ personal injury lawyers, and a large claim could be very damaging to a sole trader or small firm without the necessary insurance in place.
Even if a client was unsuccessful in suing you, the legal costs of defending the claim could still be significant, and would be covered by the insurance policy.
What’s more, adequate insurance offers a valid benefit to your clients, which you should communicate to both existing and potential new ones. Insurance provides your clients with the peace of mind that if something should go wrong, there are funds in place to compensate them in the event of a loss or injury.
If you are unfortunate, and a claim should arise, the financial backing of an insurer is not the only support you can call on. Without an insurance policy you would be left to fight any compensation claims on your own. Quite apart from the financial implications, there would be the worry and uncertainty of defending the claim.
If a claim should arise, an insurance broker will guide you through every stage of the process, from initial notification right through to conclusion. Along the way they will guide you as to what you should do and say, as well as what you shouldn’t. It is in the event of a claim that their expertise comes into its own.
Steps to Wellness recommends Towergate Professional Risks for Professional Liability Insurance. For any questions, advice or quote, they can be contacted on 0113 391 9545 or visit their website www.towergateprofessionalrisks.co.u
Gavin Mitchell, Managing Director at Towergate Professional Risks, provide some answers.
Have you ever thought about what would happen if a client or third party alleged that you had not acted professionally and threatened to sue you? The financial consequences could be significant, not to mention the stress and possible harm to your professional reputation.
Complementary Therapy Practitioners much like any other profession are increasingly vulnerable to claims for compensation from clients and other third parties. For a sole trader or small business, the consequences could be very serious, as claims can run in to many thousands of pounds. Professional Indemnity Insurance gives practitioners a way of protecting themselves in the event that they should be sued as a result of their business activities.
What does it cover?
Professional Liability Insurance is designed to cover as broad a range as possible of ‘civil liability’ – in other words, most of the things you could get sued for as a result of your business activities.Typically, it includes cover for Professional Indemnity, Public Liability, Products Liability and Libel and Slander.
What exactly does each of these sections cover?
Professional Indemnity relates to the advisory or therapeutic element of your work. For example, a client might allege that you have carried out inappropriate treatment with them, or failed to carry out necessary actions, and that they have suffered a financial loss or injury as a result.
Public Liability relates to any other type of loss, injury, or damage to property or individual arising out of your business activities. These could be specific to the treatment, such as an injury following massage treatment, or more general, such as a client tripping over a treatment bag you had left lying around.
If you sell any products to your clients to complement their treatment, such as supplements and vitamins, a relaxation CD or a book, you could also be liable for any losses occurring as a result of the use of these products, even if you did not manufacture or produce them yourself. The Products Liability section covers this type of claim.
The final section then, is Libel & Slander. To many, this may seem like a strange type of insurance cover for complementary therapist to have. However, the complementary medical profession is a very collaborative one. Many experienced practitioners will share their expertise with others and local association meetings and even at larger trade shows and exhibitions. They might even publish their thoughts in newsletters, journals, websites, blogs or podcasts. Before they know it, some practitioners could find their words and opinions are seen by thousands of people worldwide. If you shared your thoughts with other practitioners and inadvertently made a comment that another party felt was defamatory against them, they may consider taking action against you for defamation.
You now know what is covered, but you may ask yourself ‘do I really need it?’
Professional Liability insurance is not currently a legal requirement. However, a number of professional associations strongly recommend it. Claims for compensation from clients are becoming more and more common in an age of ‘no win, no fee’ personal injury lawyers, and a large claim could be very damaging to a sole trader or small firm without the necessary insurance in place.
Even if a client was unsuccessful in suing you, the legal costs of defending the claim could still be significant, and would be covered by the insurance policy.
What’s more, adequate insurance offers a valid benefit to your clients, which you should communicate to both existing and potential new ones. Insurance provides your clients with the peace of mind that if something should go wrong, there are funds in place to compensate them in the event of a loss or injury.
If you are unfortunate, and a claim should arise, the financial backing of an insurer is not the only support you can call on. Without an insurance policy you would be left to fight any compensation claims on your own. Quite apart from the financial implications, there would be the worry and uncertainty of defending the claim.
If a claim should arise, an insurance broker will guide you through every stage of the process, from initial notification right through to conclusion. Along the way they will guide you as to what you should do and say, as well as what you shouldn’t. It is in the event of a claim that their expertise comes into its own.
Steps to Wellness recommends Towergate Professional Risks for Professional Liability Insurance. For any questions, advice or quote, they can be contacted on 0113 391 9545 or visit their website www.towergateprofessionalrisks.co.uk
Please click this link for information on Professional Liability Insurance explained
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