Risk management

Dealing with complaints

We have discussed before how to avoid claims, but this week we will be looking at how to handle complaints, and ways to try and prevent them turning into negligence claims.

The first step for any practice is to allocate a main point of contact who will act as the complaints co-ordinator.

This individual could also manage the claims notification procedure within the firm.

However, at some practices it may be beneficial to separate this function.

If the practice is relatively small, then one co-ordinator should be sufficient.

But larger practices may need to appoint a representative within each department to overlook all complaints from disaffected clients in the first instance.

Once a grievance has been deemed valid, these representatives should report it to the main complaints manager.

Secondly, ensure staff know what to do when a complaint comes in and to whom all complaints should be referred.

There should be a clear reporting procedure which all members of the practice understand and know how to implement.

Firms should also maintain a central register of complaints outlining when the allegation arose and how it occurred.

This central register is a source of information which will help a firm see exactly where the high risk areas of the practice are.

The central complaints co-ordinator should ensure all grievance files are re-evaluated every six months at least.

This way it is easy to see where risks lie, whether it be by department or by type of work undertaken.

Once these risks are identified a firm can take steps to revise its risk management procedures.

All complaints need to be dealt with promptly and thoroughly.

Do not procrastinate in the hope that the problem will go away - it will not.

At this stage, it may be necessary to notify the firm's professional indemnity insurers and let them know that a negligence claim may arise.

An insurer would rather know that there may be a negligence claim coming as opposed to finding out after it has been made.

When attempting to resolve a complaint write to the relevant client and give a valid accountable reason for the problem.

Let them know what the firm will be doing to resolve the issue and give the client a realistic period of time in which it is hoped the problem will be cleared up.

Once the problem is resolved, write to the client again, informing that the complaint file is now closed.

Allow the client a period of time (for example, two weeks) to respond if not satisfied with the results.

These examples show how good complaints management forms an integral part of a practice's risk management procedures.

Not only does it show a firm's insurer that the practice has a good grasp of existing problems, but the information found can go some way to preventing future mistakes.

This column was prepared by the Alexander Forbes Professions risk management team