{"id":63317,"date":"2023-07-25T14:16:00","date_gmt":"2023-07-25T14:16:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=63317"},"modified":"2023-08-31T16:52:23","modified_gmt":"2023-08-31T16:52:23","slug":"professional-negligence","status":"publish","type":"post","link":"https:\/\/businessyield.com\/education\/professional-negligence\/","title":{"rendered":"PROFESSIONAL NEGLIGENCE: Definition, Types, Examples, and Guide","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

Businesses rely on professionals to provide expert advice on a specific subject because they are assumed to have the qualifications and knowledge to provide the answers you require. As a result, professionals are expected to exercise reasonable skills and care in their field. However, because of this reliance on specific consulting, there is a risk that incorrect advice from a third party will result in loss and unwelcome consequences for you or your business. In such cases, you may be able to recover the losses incurred as a result of professional negligence. So, let\u2019s take a look at the different types and examples of professional negligence in the following professions: construction, lawyers, and medical practice.<\/p>\n\n\n\n

What is Professional Negligence?<\/span><\/h2>\n\n\n\n

Professional negligence occurs when a professional (lawyers, insurance brokers, accountants, architects, realtors, financial advisors, and so on) fails to perform the professional duties or obligations that their clients hired them to perform. When someone agrees to perform professional services for someone else who requires them, the hired professional must use \u201creasonable care\u201d in doing so.<\/p>\n\n\n\n

Reasonable care is defined as \u201cthe degree of caution and concern for one\u2019s own and others\u2019 safety that an ordinarily prudent and rational person would exercise in the same circumstances.\u201d<\/p>\n\n\n\n

To avoid a claim of professional negligence, the professional must follow the same standard of care as well-qualified professionals acting in similar circumstances. When a claim of professional negligence is filed, two methods are typically used to determine whether the reasonable duty of care was met: foreseeability tests and multifactor tests.<\/p>\n\n\n\n

Foreseeability tests are used to determine whether the professional could have reasonably predicted that their actions, or lack thereof, would cause the client harm or loss. To determine a professional\u2019s duty of care, multifactor tests consider several factors, including:<\/p>\n\n\n\n