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10 Ways to Avoid Malpractice Suits

Running a business carries inherent risks. Among some of the problems businesses and firms encounter are malpractice claims. These lawsuits are usually initiated by unhappy clients who use the law as a final option. However, these suits are avoidable with planning and forethought. In fact, there are 10 ways firms can avoid malpractice suits.

1. Write it Out!

Most lawsuits arise out of a misunderstanding. Therefore, it is important to create clear, thorough contracts that cover all situations. There should also be a mention of how to approach problems as they arise, i.e. by contacting an appropriate representative.

2. Open the Lines of Communication

As insurance agency will tell you most clients get anxious when there is a lack of communication. Make sure to foster healthy communication between the firm and the client. This will help to evade bigger problems by revealing issues when they are manageable. It will also make the client feel more secure and confident in your services.

3. Check Up on Clients

Communication is important but it is also necessary to “follow-up” with clients. This communication occurs after the firm renders an action or service. For example, if the firm performs research on something for clients it is important to promptly advise them of the results.

4. Manage Expectations

One of the best ways to avoid using malpractice insurance is let customers know what to expect. If they are expecting the “moon and the stars” bring them back down to reality. Give them a real look at where they’ll be after your company performs its obligations. Clients can’t be disappointed later when they have an appropriate expectation at the start.

5. Don’t Be Careless

Making minor mistakes can cost you a lot in the end. Make sure all work is performed to the highest standards. Cutting corners can mess up an aspect of the service that is important to the client.

6. Use Outside Help When Needed

Sometimes firms take on more than they can handle. If your firm is dealing with an extraordinarily large contract it is best to seek additional help. This may mean sub-contracting parts of the job or using part-time employees. It may cost money to do this, but a successful completion of the job means more money for the firm in the future.

7. Use Empathy

Think of your business performance as your client would see it. Doing this helps you see problems you may not have realized before. If you can resolve these ahead of time you will avoid dealing with an unhappy client later.

8. Use Modern Business Practices

Paragon Underwriters advise that one way a firm can avoid lawsuits is to keep everything up to code. Following the latest business trends and regulations means that you are performing your role correctly. When you can show an unhappy client that you “do everything by the book” it will help dissuade them from seeking legal recourse.

9. Get Advice From Former Clients

Look to your happy customers to know what you’re doing right. Doing so can help you formulate a fail safe business plan.

10. Get Proper Insurance

If a firm has appropriate insurance it can prevent a lawsuit. Having an adequate liability policy will help compensate clients for their claims. When clients receive compensation through an insurance policy they have no reason to initiate a separate malpractice lawsuit. Paragon Underwriters can make sure your firm has the proper insurance coverage to prevent clients from taking the matter to court.

Let Paragon review your agency’s assets and liabilities to find out whether you need additional insurance. Paragon can provide commercial, vehicle and professional liability insurance for any need. Ensure that your firm is adequately insured to protect it from unnecessary litigation.






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