Professional Liability Insurance Readiness

Evaluate readiness for professional liability insurance (E&O, D&O, malpractice) by assessing risk management practices, documentation, and governance

AllHealthcareBiotechTechnologyConsulting20 minutes18 questions

1. Contracts & SOWs

Are written contracts or SOWs used for all client engagements?*

Written agreements define scope, deliverables, responsibilities, terms

Do contracts include limitation of liability and indemnification clauses?*

Cap damages, define excluded liabilities, mutual indemnification where appropriate

Are contracts reviewed by legal counsel before execution?*

Attorney review for high-value engagements, template review for standard agreements

2. Professional Standards

Are professional staff properly licensed/certified for their roles?*

Healthcare: State licenses, DEA, board certification; Engineering: PE license; Finance: CPA, CFP

Is continuing education completed to maintain certifications?*

CME, CPE, CLE, or other professional development requirements met

Are industry standards and best practices followed in service delivery?*

Adherence to professional codes of conduct, industry guidelines, regulatory standards

3. Documentation & Records

Are client interactions, advice, and decisions documented contemporaneously?*

Meeting notes, emails, recommendations, rationale documented at time of service

Are records retained per professional standards (typically 6-7 years)?*

Document retention policy aligned with statute of limitations, regulatory requirements

Are disclaimers used for information vs. advice?*

Clarify when providing general information vs. professional advice/opinion

4. Complaints & Claims

Is a complaint handling process established?*

Written procedures for receiving, investigating, responding to client complaints

Are potential claims reported to insurer promptly (claims-made policy)?*

Claims-made policies require notice during policy period; tail coverage if switching insurers

Is legal counsel engaged immediately when claim or lawsuit threatened?*

Do not admit fault, do not discuss with claimant without attorney present

5. Corporate Governance

Are board/management meetings documented with minutes?*

D&O coverage: Document decisions, conflicts of interest, due diligence

Are conflicts of interest disclosed and managed?*

Disclosure policy, recusal from decisions, independence of board members

Are financial controls and audits in place (Sarbanes-Oxley if applicable)?*

Internal controls, financial statement audits, audit committee for public companies

6. Quality & Oversight

Is peer review or quality assurance conducted on work product?*

Second reviewer for complex work, quality checks before delivery

Are errors corrected promptly when identified?*

Notify client, correct at no charge, document corrective actions

Are professional liability trends monitored and risk mitigation improved?*

Track near-misses, analyze claims trends, implement preventive measures

Please answer all required questions to see your results