Professional Negligence

Professional negligence FAQs

• What is professional negligence/indemnity?

  Professional negligence/indemnity is the failure by someone who claims to have a special skill - a professional - to meet the standard of care they need to show.
  
  A claim may be based on one or more breaches of:

  • a contractual term
  • duty of care in tort/delict
  • a fiduciary duty
  • a statutory duty

• Who can potentially face a claim of professional negligence?

  Broadly defined, a "professional" is any individual or organisation that can obtain the benefit of professional indemnity insurance. Common claims are against legal professionals, financial services professionals and construction professionals. However, claims are increasingly being raised against other individuals and organisations.
  
  Claim examples include:
  

  • A lawyer who has allegedly provided negligent advice or missed a court deadline.
  • An accountant/financial planner who has failed to advise on corporation or inheritance tax planning implications.
  • An architect or engineer's alleged negligence in respect of design or specification of a building or other construction project.
  • A claim under the Equality Act or a judicial review against a school or university's decision to exclude a former pupil.

• What is the role of a professional negligence solicitor?

  Our job is to achieve a cost-effective resolution to disputes and regulatory investigations faced by professionals.
  
  Our dedicated professional indemnity lawyers use their years of experience and specialist knowledge to identify the crux of any dispute or regulatory issue and to guide the professional and their insurers through what is often a worrying and stressful process. We consider every detail and ensure that all necessary and pertinent evidence is uncovered and analysed to substantiate the response to a claim or regulatory complaint.
  
  We take a pragmatic approach that considers commercial, financial, and reputational factors, and is tailored to individual circumstances and the professionals involved.
  
  As well as dealing with current claims or complaints, we provide proactive risk management advice to help prevent future claims or complaints and protect professional reputations.

• What should I do if I receive notice of a claim?

  Professionals typically receive notice of a professional negligence claim by way of a letter of claim as a precursor to possible court proceedings. Sometimes, where a statutory time limit is approaching, a court action may have commenced without a letter of claim being received. In other cases, the first expression of discontent might be a complaint from a client.

  If you have received notification of a complaint or dispute, you must notify your professional indemnity broker and insurer as soon as possible, to ensure your cover is not compromised.

• What costs are involved in professional negligence claims?

  If you are indemnified under an insurance policy, your insurer will likely meet the costs of defending the claim, as well as any settlement sum or payment of damages. Many policies will also provide cover for regulatory complaints. You will usually need to meet a self-insured amount (excess), details of which can be found within your insurance policy.

  This is important as defending a claim or complaint can often be very expensive due to the complexity and value involved.

• How long will a professional negligence claim last?

  This will depend upon many factors, including whether a court action is raised and, if so, in which court/jurisdiction. It can, however, last anything from a few weeks to years before being drawn to a close. Our professional negligence solicitors work proactively to ensure that all matters are resolved as efficiently as possible.