Understanding the Elements of Professional Negligence
It is easy to prevent a Professional Negligence insurance claim when you understand the elements that go into determining the outcome of a claim.
In this article on professional negligence, you will learn:
- The basics of professional negligence.
- The elements of a professional negligence insurance claim.
Elements of Reasonable Care
There are two elements used to decide if reasonable care is present in one’s work.
- Foreseeability tests
- Multifactor tests
Foreseeability tests determine if a person can decide that their actions, or lack of action, could harm or cause a loss for their client.
The Business Insurance Platform Embroker describes several elements used in multifactor tests to determine the duty of care:
- The severity of the harm.
- Whether a different course of action is possible.
- The cost of a different course of action.
- Whether safer or less harmful options exist.
These tests decide the success of a professional negligence claim.
Determining the Outcome of a Claim
A successful claim proves a professional provides service below a reasonable standard.
If a professional acts within reason, a professional negligence claim is unsuccessful.
In the meantime, learn about more elements of professional insurance by visiting the SmartCompliance blog!
