What to do if your small business is at risk

If you know or suspect your business may be at risk, taking action promptly is vital to minimise potential damage.

Prompt action and notification of problems are often a standard condition of many professional indemnity policies. Insurers may reject a claim if they feel it could have been avoided, or made less damaging with earlier notification.

You should always notify your insurer if:

you receive a complaint from a client which could lead to a claim
you realise you have made a mistake and cant easily resolve the problem
you receive a series of escalating complaints on a project
a client withholds payment to you after a complaint
you become aware of a shortcoming in your work that you cant easily put right

Your insurance cover needs to be flexible to reflect the fact that your business changes over time.

You should be able to review your policy regularly and increase your level of cover at any time, to make sure you are adequately protected.

NEWS