Reworking your own service is not the same as compensating a client’s loss
Split correction costs, fee disputes and third-party loss before assuming professional liability pays the whole complaint.
Break the complaint into its components
A client complaint may combine a request to finish the promised work, a demand to refund fees and a claim for a separate financial loss. Putting all three into one total can obscure the insurance question. Checked on 17 October 2026, this dossier concerns professional-liability analysis, not a blanket coverage decision. Begin with what was contracted, what allegedly went wrong and what each amount represents. Liability insurance is not automatically a performance guarantee or a reserve for your own staff's correction time. At the same time, calling a complaint contractual does not by itself prove that every resulting liability claim is excluded.
Match the wording to the profession
AXA's professional-liability presentation describes different activities and risks for different professions. Its published general conditions distinguish insured third-party liability from exclusions concerning own damage, fees and certain contract-performance losses. Special terms and extensions may materially change the analysis. Do not apply a general paragraph to an architect, adviser or IT provider without checking the actual profession-specific documents. Ask the insurer which provision applies to each claimed component and whether a limitation or deductible is involved. A broad product description about professional errors does not erase exclusions; an exclusion headline does not replace reading the complete applicable clause either.
A hypothetical three-part demand
Imagine a design practice receiving a demand comprising CHF 6,000 of its own time to redraw a defective deliverable, CHF 4,000 of disputed fees and CHF 18,000 alleged client delay loss. These are invented amounts, not an accepted claim. The useful first step is three separate lines with evidence and legal basis, not a single CHF 28,000 insurance receivable. None is automatically covered or automatically excluded simply because it appears on that list. Send the contract, scope, chronology and complaint for assessment. Ask how corrective work can proceed without prejudicing evidence or inadvertently accepting liabilities beyond what the practice actually owes.
Separate commercial goodwill from an insured settlement
An owner may want to offer free rework to preserve a relationship. That commercial decision should not be described to the client as an insurer-approved settlement unless it is one. Before admitting liability, refunding fees or signing a release, obtain the insurer's instructions where the contract requires them. Keep urgent loss-limitation steps proportionate and documented. Explain the factual position professionally without guaranteeing that the policy will fund the proposed remedy. A credible response can acknowledge the complaint and agree a review timetable while leaving disputed causation and quantum open. Preserve versions and correspondence so correction does not erase the evidence needed to understand the error.
Use the lesson to improve the next contract
Review acceptance criteria, change requests, responsibilities and escalation steps for the service actually sold. Compare the activities declared to the insurer with the work the team now performs. Ask specific renewal questions about re-performance, fee claims, pure financial loss, contractual guarantees and applicable extensions instead of asking whether professional mistakes are covered in general. Keep an internal correction reserve separate from expected insurance recoveries. Clearwise can help structure this comparison and identify unsupported assumptions. The insurer and qualified legal advisers must assess the particular claim; clearer scoping and documentation can improve decisions but cannot guarantee that a future dispute will be insured.
Sources and further reading
Original Clearwise analysis. External reporting provides context; rules and contract terms must be verified with the competent authority or provider. Some press articles may require a subscription.
Apply this to your situation
Compare your actual documents and clarify what matters before making a commitment.
Request a free consultationGeneral guidance, not a binding quote or personalised legal, tax or investment advice. Examples are hypothetical and results are not guaranteed.
