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Claims library

Professionals may incur liability and face claims arising from breach of contract, breach of Duty of care (negligence) or breach of statutory obligations. The law of professional negligence continues to develop as courts deliver new judgements and it is now well established that professionals owe concurrent duties in both Contract and Tort.  As a result, most claims are pursued on both duties.

The majority of professional negligence claims relate to an alleged breach (failure) to comply with an express or implied contractual term and a failure to exercise reasonable skill and care when performing professional services. This may constitute a breach of the duty of care owed to a customer, and, in certain circumstances, to a third party.

Professionals are also subject to an implied duty to inform (warn) customers of foreseeable risks or dangers. This duty can extend to highlighting the shortcomings, errors or breaches of others, particularly within construction-related projects and multi-disciplinary engagements.

These are some examples of claims that a customer could and may make against your business, but not limited to the following: 

Accountants

Accountants provide a wide range of professional services and, as a result, can face exposure to many different types of negligent claims. Common examples include:

  • Incorrect tax advice: Errors relating to tax reliefs, R&D credits, or misinterpretation of tax legislation.
  • Failure to advise on tax obligations: Including requirements relating to VAT and other indirect taxes as well as changes in tax law.
  • Tax Returns: Mistakes in preparation, late submission to HMRC, or missed statutory deadlines
  • Tax mitigation: Failure to advise adequately on the risks with tax schemes or failure to identify available allowances and exemptions
  • Bookkeeping and accounting errors: Inaccurate financial statements or statutory accounts
  • Business and financial advice: Incorrect valuation of assets or goodwill, flawed advice relating to business transaction
  • Confidentiality and regulatory compliance: Claims arising from data breaches, unauthorised disclosure of client information, or failure to comply with GDPR, Anti-Money Laundering and other regulatory obligations.

Insurance Brokers

An insurance broker acts as an intermediary and is regarded as the agent of the policyholder. As a result, brokers can face claims from their customers arising from a range of alleged failings, including:
  • Failing to effect insurance
  • Effecting insurance that does not meet the client’s demands, needs and requirements
  • Failing to act with reasonable skill, care or speed
  • Failing to disclose material facts and information to insurers
  • Making a misrepresentation to insurers
  • Failing to keep the client adequately informed about the terms or scope of cover
  • Failing to give appropriate or accurate advice

Construction Professionals: 

Professionals operating within the construction industry, including Architects, engineers, and surveyors, can face claims from alleged failings of:
  • Recommendations made in relation to Builders & deficiencies in the tender process
  • Responsibility for construction, building cost estimates and budgets
  • Failure to design appropriately or to revise designs when required
  • Over design or inappropriate design solutions
  • Inadequate or incorrect specification of materials
  • Failure to comply with planning requirements
  • Insufficient knowledge or application of current legislation, standards and codes
  • Inadequate Inspection or supervision of the work
  • Issues relating to extensions of time
  • Errors in issuing the Final Certificate or administering the building contract
  • Failure to warn the client of foreseeable risks or defects

Surveyors:

RICS regulated surveyors who are not directly involved in construction, who provide a wide range of services and are commonly subject to claims of:
  • Property letting/management: incorrect, inadequate or misleading advice on lease terms, rent reviews, break clauses or dilapidations
  • Valuations: over or under valuing a property
  • House purchase surveys: Failure to identify or report material defects such as roof issues, damp, subsidence, or other significant structural problems
  • Failing to properly inspect a property: Inadequate inspections leading to missed safety hazards, such as asbestos or Japanese Knotweed.
  • Estate agency services: misleading or false statements about a property.
  • Property Auctions: Properties being misdescribed or misvalued.
  • Negligent land surveying: Errors in boundary identification, site measurements, or topographical surveys that lead to financial loss
  • Cost estimation errors: Inaccurate cost advice or estimates, resulting in budget overruns or misinformed decisions