DO YOU CHARGE FEES FOR YOUR ADVICE/SERVICE

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Permalink Reply by Lisa MacFarlane on October 3, 2009 at 6:49pm

Lol this looks more like an advertisement than a discussion but let's look at that in more detail - if you don't mind. First question - when you charge customers consultation fees, regardless of whether they persue business with you at a later date, what kind of insurance should you have? I ask as I have recently had a customer making the very most of (and good on them to some extent) my advice, but then not following through with me - rather, they have taken all of my advice on board and gone elsewhere finding cheaper alternatives. That's fine by me on one hand as I want the best for them within their own budget. A little part of me knows that because I do it great I wonder what level of service they will get elsewhere... i.e. what compromise on quality are they making choosing to go elswhere. But, aside from that, particularly in business administration systems advice, what are the ins and outs I should know about when they do consult? What "transaction" (social/financial/etc) is deemed insurable? Can you share with us some guidelines perhaps?

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Permalink Reply by Phil Astley on October 4, 2009 at 12:48pm

Hi Lisa

"Lol this looks more like an advertisement than a discussion"

Not sure yet what is advertising and what is social networking - but saw this and couldn't really resist. I have no involvement with Trevor - or his company - just thought I'd better make that clear. But I do have professional indemnity insurance - and other overheads beyond what many of my non-professional competitors have.

Back in the day when we had a larger practice, we also had a claim. It was for over $1m - but in the end was settled for less than 10% of that. What's worse the problem started in a practice we bought - and the deal was completed in the first month after that - by the previous owner. The main claim was against a vendor - but they'd gone offshore - so we were claimed against - even though we had done nothing wrong - just bad timing.

A couple of years ago I had a stroke. Took the best part of a year - but I got back into my profession. However since then I discovered I had forgotten to do something a year earlier (not long after the stroke). Only little - but it could have cost a client a lot of money. After some lost sleep for a few days, it was eventually sorted out and there was no cost to the client. But during those few days I was hoping my insurance cover wouldn't be at risk because of my stroke. Fortunately it never eventuated. We've since changed our procedures - and educated my wife more on the professional liabilites we face - as a backup.

Now these are the only times I have had to use PI insurance (and the second case wasn't even needed) - but it does allow me to offer advice and know that if my professional training isn't enough (and it does affect the way we work), I have insurance cover - an essential backup if I'm going to expose myself to such risks by giving services and advice. It's an essential backup.

I feel too many people do offer advice without proper backup. This isn't just insurance - that's just the last measure. But it is important.

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Permalink Reply by Lisa MacFarlane on November 12, 2009 at 4:32pm

Thanks Phil, that's much more useful. I might contact Trevor direct for the guidelines side of things perhaps.
Much appreciated!

Phil Astley said:

Hi Lisa

"Lol this looks more like an advertisement than a discussion"

Not sure yet what is advertising and what is social networking - but saw this and couldn't really resist. I have no involvement with Trevor - or his company - just thought I'd better make that clear. But I do have professional indemnity insurance - and other overheads beyond what many of my non-professional competitors have.

Back in the day when we had a larger practice, we also had a claim. It was for over $1m - but in the end was settled for less than 10% of that. What's worse the problem started in a practice we bought - and the deal was completed in the first month after that - by the previous owner. The main claim was against a vendor - but they'd gone offshore - so we were claimed against - even though we had done nothing wrong - just bad timing.

A couple of years ago I had a stroke. Took the best part of a year - but I got back into my profession. However since then I discovered I had forgotten to do something a year earlier (not long after the stroke). Only little - but it could have cost a client a lot of money. After some lost sleep for a few days, it was eventually sorted out and there was no cost to the client. But during those few days I was hoping my insurance cover wouldn't be at risk because of my stroke. Fortunately it never eventuated. We've since changed our procedures - and educated my wife more on the professional liabilites we face - as a backup.

Now these are the only times I have had to use PI insurance (and the second case wasn't even needed) - but it does allow me to offer advice and know that if my professional training isn't enough (and it does affect the way we work), I have insurance cover - an essential backup if I'm going to expose myself to such risks by giving services and advice. It's an essential backup.

I feel too many people do offer advice without proper backup. This isn't just insurance - that's just the last measure. But it is important.

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