A client of mine almost made a very expensive mistake this week.
They have professional indemnity insurance and received a letter from one of their clients alleging that some work they had done was not up to scratch and that additional costs had been incurred in putting it right.
My client forwarded the letter to me but it turns out that they knew about the problems with the work several months ago. The insurance company initially declined to deal with the claim for this reason but have since been persuaded otherwise, but it was touch and go!
The moral of the story – make sure all staff are aware how important it is to report client complaints (even if the company may not be at fault) to management or directors, then make sure your insurer is notified straight away.