Professional liability claims are made against WellBiz franchisees every year. While some claims may be brought against your employees for legitimate injuries and damage caused, other claims can have little merit, brought by displeased clients for not achieving a desired outcome.

It’s important to understand that for a professional liability claim to be justifiable, the acts as performed (whether poorly or not at all) must be the direct cause of an injury to a client and proven in a court of law.

Even with the most solid defense and confident counsel backing your employees, getting to the point of arbitration of a claim doesn’t happen quickly. And no matter the outcome, being involved in a claim against your business can have significant effects on your business’s finances, reputations and even the wellbeing of your employees.

Professional Liability Claim Risk #1: Financial Effects

The costs of defending a professional liability claim can vary depending on the scope of the claim. But even if your employee isn’t found at fault and owes no payment to the claimant, there are still expenses associated with defending a claim. The costs of hiring a reputable defense team, expert witnesses and researchers can be substantial, sometimes reaching the tens of thousands of dollars. If you’re found guilty and owe a settlement to the claimant, the overall cost of the ordeal can easily double or even triple. This can be devastating to your business and the personal finances of your employee.

The invaluable resource of time is another cost of managing a professional liability claim. Time spent on preparation, deposition and trial all adds up to hours away from work, not serving other clients and not earning additional income.

Professional Liability Claim Risk #2: Reputation Effects

Financial implications are a definite concern, but something that can be recovered from over time. Your business’s reputation and the reputation of your employees are perhaps even more vulnerable if you are sued — especially if services allegedly caused injury or damage to a client.

If this allegation is made, and moreover, if it can be proven, there’s a real risk that your business’s reputation will take a hit. A blow to your business’s reputation and those of your employees, can be quite damaging and difficult to counter. When your public reputation takes a hit, you run the real risk of losing clients and being unable to gain new ones, at least for a time.

Professional Liability Claim Risk #3: Wellness Effects

An allegation against the services your WellBiz franchise provides can be very unsettling. You may feel offended or even angry if you believe your employees are innocent. You may feel distressed that your client was injured or suffered damages, whether your business’s services are to blame or not.

The stress of a claim and an impending lawsuit can have a negative effect on the level of performance you deliver to your other clients and can even affect how you manage your business. Whether a claim against your business is an open-and-shut case or drags on for months, the stress can impact your day-to-day wellbeing and the wellbeing of your employees.

Protection Against the Professional Liability Risks WellBiz Franchisees Face

Proper risk management is your best defense when providing hands-on services like lash extensions, waxing, personal training, massages and more. Following proper procedures with every client and forming honest, caring relationships with them are two very effective ways to help reduce the chances of being sued for professional liability.

It’s also a sound business practice to purchase a Professional Liability insurance policy to help offset the financial risks if your business or employees are ever sued.

WellBiz has partnered with Lockton Affinity to provide you access to comprehensive Professional Liability insurance coverage to protect your business and your employees at an affordable price.

Protect your business against Professional Liability risks today!