Glossary of Terms
- Breach of duty – When a professional or company fails to meet a duty of care towards another.
- Breach of confidentiality – Revealing something without informed consent.
- Civil liability – The responsibility for paying potential damages following a lawsuit.
- Compensation – An enforced financial remedy for losses or injury incurred.
- Defamation – Libel or slander.
- Error – A mistake requiring legal remedy.
- Negligence – Professional conduct that does not meet the standards of behaviour established by law.
- Omission – Failing to perform an act that has been agreed to or inadvertently leaving a word, phrase or clause out of a written document
What is a professional indemnity certificate?
A professional indemnity insurance certificate is a summary document that an insurance company may provide a policyholder with on request which shows that adequate insurance has been taken out, without disclosing the confidential policy document. This might be needed to present to a client or trade body as evidence that the organisation in question is fully compliant with the relevant professional regulations.
A professional indemnity insurance certificate can also be used to show to clients and potential customers to offer them peace of mind that, should they need to make a claim against the services offered down the line, adequate financial provision has been made to meet such a claim.
What are the differences between defamation, libel & slander?
The term ‘defamation’ describes an untrue statement that’s been presented as fact and causes harm to the character of the person it describes. If someone’s reputation is damaged because of a false statement, this statement will be considered defamatory. Importantly, such statements can cause a business or individual to start legal proceedings.
Defamation can often be confused with libel and slander. In fact, these are both types of defamation and fall under this umbrella term.
It is important for business owners to understand what defamation, or defamation of character, is – as well as the benefits of taking out a professional indemnity policy.
What is libel?
Libel specifically describes a false or defamatory statement that has been written down. This could be in a letter, email, social media post or text message, for instance.
What is slander?
The term slander is defined as a false or defamatory spoken statement. This could be made in a speech or even a video posted on a website or social media channel.
Opinion or defamation?
When dealing with claims of defamation, it’s also important to distinguish between defamation and an opinion. Should an opinion be considered an accusation, and be untrue, this still defames the person in question.
What is a breach of confidentiality?
A breach of confidentiality is when data or private information is disclosed to a third party without the data owner’s consent. Whether an intentional breach, accidental error or theft, the data owner is entitled to take legal action for potential losses or damage that comes as a result of the breach of confidentiality.
In many professions, protecting confidential information is essential for maintaining trust and ongoing business with your clients. This stands for large corporations, small businesses and freelancers. Failure to do so can result in court cases, terminated contracts and even the collapse of the business.
What is professional negligence?
The definition of professional negligence is when a professional fails to perform their responsibilities to the required standard or breaches a duty of care. This poor conduct subsequently results in a financial loss, physical damage or injury of their client or customer.
A claim of professional negligence can be made against anyone considered to have expertise in the services they provide; for example, a technology or management consultant, surveyor, etc. For the claim to be successful there must be evidence that the service provided fell below the standards of their profession, resulting in negative consequences.
If, for example, you are a personal trainer and you fail to your client ask about any previous injuries and this then results in them injuring themselves during your session, you could be liable. As a professional trainer, you would be seen to have fallen short on your duty of care to that individual, a professional negligence claim could then be brought against you.
Some other examples of professional negligence are poor business strategy recommendations, failure to advise about tax relief available, failing to identify serious structural problems with a property or a breach of confidentiality.
What is the difference between Professional Indemnity and Public Liability?
Public liability insurance and professional indemnity insurance are types of business insurance that cover compensation claims, though the nature of these claims differ. The difference between public liability and professional indemnity insurance is that public liability is tailored for claims by members of the public for injury, illness or damage while professional indemnity covers claims by clients for professional mistakes or negligence. While we all hope that business will go without a hitch, having public liability and professional indemnity insurance can offer peace of mind that if something does happen, you’re covered.