People who work in a service oriented profession need to be mindful about their potential professional liability. Any negligent act or omission or a customer’s mere perception of negligence could lead to professional liability lawsuits.

Legal Theory of Professional Liability

When undertaking a contractual relationship, service providers avoid causing their customers any type of economic or physical harm. In many instances, a customer may experience financial losses because a professional failed to fulfill his or her end of an agreement properly. For example, a customer may rely on misinformation from a consultant or an accountant that damages his or her business.

Physical Harm

A professional liability claim could include damages for physical injury. For example, failing to do something that was a part of a contractual agreement that results in someone getting hurt may reflect professional negligence.


Not everything that goes wrong in a professional relationship could create liability on the part of a service provider. Certain criminal activity is outside of the scope of a contract. If it is not foreseeable to a service provider, it is unlikely to result in liability for a person’s damag.

Across all industries, professionals must be proactive about preventing liability. Strong safety policies as well as strategic quality controls and managerial practices can help to avert claims.