Farm Insurance :: Articles
SHARE

Share this article!

Risk Management - 8 steps To Avoid Litigation

Risk Management - 8 steps To Avoid Litigation

Accidents, mistakes and misunderstandings can happen in any business.
Some are settled amicably, others grow into full-blown disputes, and before you know it you could be facing a legal claim.

Being sued is stressful, time-consuming and expensive.

Even if you win the case the disruption to your business can outweigh any financial gains.

A key objective for most businesses is to avoid being drawn into litigation in the first place and here we outline the steps freelancers can take to safeguard their business against litigation.

Eight steps to safeguard your business

Professional contract agreements.

No work should be done without a contract.

Always have one in place that defines scope of services and terms of remuneration before you commence an assignment.

Without an agreement the opportunities for misunderstanding and controversy are numerous.

Business Insurance
If you're in the process of buying or renewing your business insurance, whether it be a factory, a shop, office, warehouse, a farm or whatever .. even a home-based business, we can show you a quick way through the maze of offers and options available on the market. Our Australia-wide broker panel will ensure that you get the best cover for your specific needs … and at the right price to suit your budget.

Documentation and tracking changes.

A common source of dispute is when the client believes they have asked for a solution that does one thing only for the freelancer to deliver a solution that does another.

Know who is responsible for when things go wrong.

Meticulously document client requirements and be particularly vigilant when changes creep into a project - as it is easy to lose track of them.

Make sure all changes are costed and signed off. These records will be of immense value in defending against legal claims.

Checking work.

Freelancers are not required to be perfect.

However, this does not relieve them from the obligation to check their work because this is one of the standard systems used to discover and correct errors.

Errors, per se, are not evidence of malpractice, but failure to check the work product is.

Communications with the client.

Many of the claims made by clients are not for serious damages but are based simply on discontent and dissatisfaction with the Freelancer.

This is often brought on by the Freelancers own lack of consideration of the client.

Seemingly minor things such as missing deadlines, lateness to meetings, unavailability by telephone, failure to return emails, and failure to keep the client informed at all times.

With this background of discontent, a real problem such as exceeding the cost or time budgets will trigger an avalanche of serious legal problems.

The best way to keep clients happy is to treat them with respect, keep them informed, and maintain a friendly relationship.

Early recognition of potential disputes.

When issues do arise, dealing with them quickly and professionally can prevent them developing into a major problem.

Burying your head in the sand never makes disputes disappear.

Deal with complaints in an appropriate way and seek advice from a solicitor who understands IT law if your issue escalates.

Most insurers offer a free 24 hour advice helpline, which will put you in touch with experts on how to best handle your situation.

Meeting budgets

  • Costs.

Clients become very dissatisfied and resentful when costs exceed the approved budget.

In such situations, the client may give serious consideration to making claims against the freelancer as well as withholding payments of professional fees.

  • Time.

Overall scheduling of a project should be realistic and should be updated whenever necessary.

Client approvals should be sought all along the way. When the client is counting on use of the project at a certain date, failure to receive it will often be very expensive.

Freelancers must avoid being a contributing factor in schedule slippage by failing to make prompt decisions and delivering work late.

Fees and charges.

Many client dissatisfactions are based on fee disputes.

In some cases this is because the billing is not clear and consistent with the written contract.

All invoices should be rendered on time and strictly in accord with the contract.

If the bill is not paid within a reasonable time, the best thing to do is talk to the client to find out if there is any misunderstanding.

A billing adjustment to satisfy a client at this point will usually be less costly than fighting and paying lawyers later.

PI Insurance

Have an up to date Professional indemnity insurance policy in place.

Litigation is always costly, however big or small your case is.

It makes sense to have an up to date Professional Indemnity Insurance policy to defend your legal position-just in case.

Read the policy wordings carefully and make sure they are relevant to your profession.

Although we may never achieve perfection, we can at least try.

By being constantly alert and aware of the usual sources of errors, we might lessen their occurrence.

From time to time we should stand back and take a good objective look at our operations.

Even minor improvements could prevent or avoid some economically ruinous claims.

These suggestions above are not all-encompassing, but should help you avoid being sued by your client.

 

Published:Monday, 25th Jan 2021
Author: Paige Estritori

Share this article:

Compare Business Finance Rates & Options
If you are looking to grow your enterprise with a business loan, we can help you find the best Plant & Equipment loans, Cash Flow Funding, Commercial Property loans, Business Acquisition funding as well as Business Refinance and Consolidation Loans. No charge, no obligation.

Insurance News

Insurers Bet Big on AI for Streamlining Claim Resolutions Insurers Bet Big on AI for Streamlining Claim Resolutions
28 Mar 2024: .Paige Estritori

Australia's insurance sector is witnessing a transformative embrace of artificial intelligence (AI), with a sweeping 90% leaning on, or on the cusp of adopting, chatbots and advanced AI to enhance claim handling, as noted in Gallagher Bassett's yearly analysis. This heightened integration reflects the sector's aim to bolster operational speed and efficacy, with a remarkable 98% of insurers predicting immense benefits from such advancements. - read more
Spike in Weather-Related Insurance Claims During Summer Revealed Spike in Weather-Related Insurance Claims During Summer Revealed
27 Mar 2024: .Paige Estritori

Over the recent summer period, NRMA Insurance reported an influx of claims linked to severe weather, with a record not seen since the autumnal months of 2022. An overwhelming number of these, about 85%, have been ascribed to weather disturbances such as storms and hail, per the updated Wild Weather Tracker statistics. - read more
Federal Court Upholds Insurer's Policy Update Clause Federal Court Upholds Insurer's Policy Update Clause
26 Mar 2024: .Paige Estritori

The Federal Court has provided a green light to Auto & General’s home and contents insurance policy terms, confirming the necessity for policyholders to inform the insurer about significant changes affecting their coverage. The company emerged victorious in a legal scrutiny instigated by regulatory body ASIC over the disputed clauses. - read more
Survey Reveals Time Crunch for Brokers Facing Compliance Hurdles Survey Reveals Time Crunch for Brokers Facing Compliance Hurdles
25 Mar 2024: .Paige Estritori

Steeped in administrative duties, brokers are dedicating over three hours daily to data processing tasks, finds a survey issued by an insurance software company. Further intensifying their plight, nearly one-fifth have reported growing complications and time expenditure in compliance adherence, underlining a pressing industry conundrum. - read more
Revolutionizing Carbon Trading with Novel Insurance Offering Revolutionizing Carbon Trading with Novel Insurance Offering
24 Mar 2024: .Paige Estritori

In an innovative move within the environmental finance sector, CFC has introduced a cutting-edge insurance product specifically targeting the burgeoning carbon credit market. This pioneering Carbon Delivery Insurance is designed to mitigate the risks associated with non-delivery of carbon credits, reinforcing market confidence and integrity. - read more
Strata Firm Commits to Transparency After Fee Backlash Strata Firm Commits to Transparency After Fee Backlash
24 Mar 2024: .Paige Estritori

In a decisive move to restore confidence among their clientele, Netstrata, a prominent strata management firm, has indicated intentions to initiate a voluntary evaluation of its business protocols with the assistance of the New South Wales Fair Trading authority. This proactive step emerges in the shadow of a critical exposé by the ABC regarding alleged overpriced insurance fees imposed on condominium proprietors. - read more

Farm Insurance Articles

The importance of income protection insurance for hobby farmers The importance of income protection insurance for hobby farmers
As a hobby farmer, you may not rely on your farm for your main source of income. Perhaps you have a full-time job but enjoy farming as a way to supplement your income and pursue a passion. However, just because farming is a hobby does not mean there aren't risks involved. In fact, hobby farmers face many of the same risks as commercial farmers, such as injury, illness, loss of crops or livestock, and damage to property. - read more
Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy Is Your Farm Under-Insured? Tips for Assessing Bushfire Insurance Adequacy
The threat of bushfires looms large over the vast expanses of rural Australia, shaping the reality of farming in this sunbaked landscape. The risk, always present, escalates as the climate warms and dry conditions persist. It's not a matter of if, but when the land will be tested by fire's wrath. In this environment, the armor of insurance isn't just recommended; it's critical for survival. - read more
Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm
As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. - read more
What You Need to Know About Crop Insurance for Your Farm What You Need to Know About Crop Insurance for Your Farm
Farming is a risky business. As a farmer, you are at the mercy of the weather, pests, and other challenges that can threaten your crops and your livelihood. That’s where crop insurance comes in. Crop insurance can provide financial protection in case your crops are damaged or destroyed, allowing you to recover from losses and move forward with your farm business. - read more
Livestock Insurance for Aussie Farmers: What You Need to Know Livestock Insurance for Aussie Farmers: What You Need to Know
Livestock farming is a significant part of the Australian agriculture industry. As with any business, farmers face numerous risks such as disease, death, theft or extreme weather events, which could cause damage or loss to their livestock assets. Livestock insurance provides cover against these risks, ensuring that farmers are financially protected from any potential financial losses, which could devastate their livelihoods. - read more
How to Save Money on Your Farming Insurance Premiums How to Save Money on Your Farming Insurance Premiums
When looking for farming insurance, it is important to shop around for the best deals. Don't simply rely on the first insurance company that you come across. Take the time to research various companies and their policies. Compare them based on their coverage, premiums, and deductibles. - read more

Need a Quote?
Start your free farm insurance quote comparison here.
Farm Type:
Postcode:

Knowledgebase
Insurance Underwriter:
An insurance company, a financial institution that sells insurance.