What To Do With an Unhappy Customer

Good Customer Relations

Unhappy Client? Here’s How Insurance Can Diffuse the Situation

It’s a nightmare many businesses have – unhappy clients. While some might have a reasonable problem, others might just be unfair. So, how do you deal with a cranky customer? While there are various options to consider, one that might be of surprise is insurance. This article will explore how you can use it to diffuse a tricky situation.

What Can a Client Claim?

You might have done the best job you could, but a customer might think otherwise. Some of they could declare are:

  • Inaccurate advice
  • Breach of contract
  • Negligence
  • Misrepresentation
  • Harassment

Many times, clients don’t necessarily need to have proof of their claims. If they’re unhappy, they can simply go along with their feelings. However, this isn’t the case if they decide to bring a lawsuit.

Keep in mind that you don’t want to escalate the situation. No matter how wrong you think they are, always be polite toward them. If not, they could spread unflattering claims which could hurt your business.

How Does Insurance Calm an Unhappy Customer?

Customers are often upset because they fear they will have to pay extra for something. For instance, if you’re a plumber and fixed their sink, but it starts to malfunction again, you’ll likely get a call from them. But, if you’re insured, you have no reason to worry because it can help quickly diffuse an otherwise intense situation.

Not only will insurance cover you, but it can soothe a distressed customer who might think you’re trying to take advantage of them.

Make sure to tell clients upfront that you are insured and that insurance can help cover costs for whatever they might be upset about. While they might not get this in the end depending on the situation, it will keep things peaceful for the time being.

How Can I Use Insurance to Help a Customer?

If you receive a complaint, don’t panic. First, listen to your customer’s concerns, ask questions, and offer to cover the issues they describe.

Once this is done, contact your insurance agency and let them know what’s going on. They’ll then direct you to the right move.

What Insurance Do I Need?

To cover yourself from these moments, you’ll want to invest in professional liability insurance. Professional liability for your business protects you from allegations of missed deadlines, negligence accusations, and errors.

While it might seem easier to deal with these issues yourself, insurance gives you peace of mind. This is especially so if something major happens – like a life-threatening injury or severe structural damage.

Where Do I Get Professional Liability Insurance?

It’s vital to look around and research different offerings. A simple online search can direct you to a plethora of options that cater to different industries.

Be sure to check that the insurance you plan to invest in fits your needs. While one might sound good, their offerings can sometimes be deceiving. You’ll want to ask the provider for detailed information about the policies, including to clarify what they do and don’t cover.

Make sure to also not go by price. While an inexpensive offering might be tempting, it usually indicates low coverage so you might not fully be protected.

How Much Does it Cost?

Insurance rates will depend on a few aspects. These range from the type of work you’re doing to how many employees you have. If you want a quick response about the cost, see if a quote is available. Often, you can enter a few details to get a general idea of how much it will be.

Does Professional Liability Cover Everything?

Good Customer Relations with InsuranceIt will shield most problems, but there are a few areas it won’t. If a customer claims they were discriminated against or abused, insurance can’t help you. Also, if your software is hacked into and a customer’s data is stolen, you’re not usually covered.

This insurance will also only cover lawsuits that were filed against you. So, if you wanted to make a lawsuit against a client, professional liability won’t help.

It’s important to talk with your insurance provider beforehand to confirm that you know what your professional liability service covers so you’re not caught off-guard.

Professional Liability vs. General Liability

As mentioned above, it’s best to use professional liability insurance over general liability. But, why is this?

Professional liability protects against much more than general liability. The latter focuses more on injuries and major damages while professional liability covers more intricate details, like if someone claims your bill is higher than they agreed or if you offered advice that ended up not having a positive result.


Unhappy clients aren’t always pleasant to deal with, but insurance has your back. With it, you can quickly diffuse tense situations that not only calm your customer but protect your business from serious and potentially damaging claims.

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