2017 Professional Services Industry Risks
With respect to concerns facing professional services companies, cyber-related risks were among the risks of greater concern than businesses overall.
Legal liability is among the top concerns facing professional services companies, reflecting the potential for lawsuits in this field. These risks include professional liability, such as errors and omissions and other professional mistakes. Nineteen percent of professional services firms also said they worry a great deal or some about customer slips, trips and falls, which could also lead to lawsuits.
Driving accidents caused by employees using their own vehicles for work may also lead to legal liability. While 71% of professional services companies report that they use personal vehicles for business (11 points higher than businesses overall), only 41% report that they have commercial auto coverage as part of their insurance.
Cyber risks worry professional services firms more than businesses as a whole, with 62% citing this as their top risk, compared with 56% of businesses overall. Yet only one in five buy a separate cyber coverage. The most worrisome cyber risks among professional services businesses are security breaches and their computers becoming damaged or going down. Professional services firms also face professional liability risks from cyber attacks.
Most professional services businesses (53%) reported being somewhat confident that they are properly insured. Only 37% reported being very confident that they are properly insured. Proper valuation of building and business personal property is another consideration for professional services businesses. Executive furnishings can be double or triple the costs of standard office furniture, and replacing damaged furniture could be costly if companies are not properly insured.
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