As a provider of goods and/or services, you are constantly at risk of a consumer, client or customer accusing your business of wrongdoing.

Common cases that end up in court often involve negligent acts related to professional indemnity. This means that a professional has offered advice or services to a person who has then suffered loss due to a mistake or error made by the professional.

Although most Australian business owners take lengthy measures to ensure negligent acts, omissions and errors are minimised, mistakes can happen at any time. This means even the most well-prepared and careful professional could find themselves accused of a negligent act.

To protect your company against the risks and expenses of a lengthy court case, it is important to ensure your business insurance policy includes professional indemnity cover. This insurance type can help your organisation recover from the financial liability related to court costs, investigations, defence and potential compensation payments.

If a professional indemnity case lands your business in court, here are a few key tips to help give your defence the best chance of a positive verdict.

Enlist the services of a specialist consultant

Even if you have an in-house lawyer on staff, it can benefit your company to invest in a specialist lawyer when a case arises. Seeking out the services of an individual trained specifically in professional indemnity cases will ensure their entire focus and knowledge is channelled into your case.

Know the legislation

When facing a claim of negligence, it is important to understand the exactly laws and legislation you are accused of breaching. Whether this means reading up on your industry’s code of practice or reviewing government legislation, knowing your legal standing can help build a more secure case.

Accept when the case is lost

Court cases are a costly affair. If you insist on continuing a fight you are destined to lose, you risk spending more than you can afford in legal fees and other related costs.

Listen to your legal advisors to ensure you know when to fight and when to settle.