Unsure? Insure! - SoundSage

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With Jack
Episode #2: What's a freelancer doing that requires insurance?
Episode #7: Client wants me to finish our project and is asking for damages
Episode #48: Having a law firm on retainer
Episode #50: A first-hand account of pursuing a payment through small claims court
Episode #46: Be a confident freelancer
Episode #37: Keeping projects on time and managing client expectations
Episode #16: Professional indemnity insurance teardown
Approach every single project with solid processes in place. Processes will help you manage common problems that arise in freelance projects
Approach each project with confidence. Confidence in your skillset, confidence in your pricing, confidence in your workflow. If you aren’t confident some clients will take advantage of that
Consider insurance if you’re providing any kind of professional service to clients because most problems stem from the unpredictable nature of clients or things happening outside of your control

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Payment disputes are on the rise (possibly due to the impact COVID is having on businesses) so make sure you have processes in place to handle these problems if they arise
If a client asks for a refund, refer to the contract to show that you’ve adhered to the terms and have done your job therefore a refund isn’t due
If the refund request is accompanied with a legal threat, it will trigger your professional indemnity policy so notify your insurer
Refunds aren’t covered under your professional indemnity insurance, but the threat of legal action means the insurer will help you defend the claim
Another course of action if there is no legal threat as yet is to use the legal advice helpline that’s available as part of your legal expenses insurance. Legal experts are available to help you talk through your payment or client disputes
Document everything (client communication, contracts etc) so that the insurer can easily help you defend your claim, or so that you can refer to it when defending yourself. It's a lot harder for your client to argue against something that's in black and white that they agreed to
Be a confident freelancer. You shouldn’t have to suffer because a client has changed their mind or has experienced problems internally with their team. Get paid for the work you've done

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Instagram: Stckmn
Twitter: Stckmn
Website: Stckmn
The legal expenses product includes a debt recovery service and legal advice helpline to assist you with late payments
Chris now starts all projects with a contract and makes sure the scope of work is clear. He takes 50% payment upfront and has milestones in place for client sign-off. He also has professional indemnity insurance
Circumstances in business can change so Chris recommends getting everything in writing—no matter how small the project is! If the scope changes midway through the project have written confirmation of this
Episode #48: Having a law firm on retainer

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Episode #48: Having a law firm on retainer
Have a contract. Get insured
There are industries that invest a lot into pursuing copyright claims so be aware of licensing agreements when using third-party assets
Creating a document that lists the resources you often use for images, video, music etc and categorising them by licenses can keep you and your clients on the right side of copyright laws
Document everything. The job spec, details around the project, all client communication
Have confirmation of clients signing-off on work. This doesn't have to be anything formal—confirmation via email is OK
If clients ask to have a call about anything they’re unhappy with, suggest they put their concerns in writing instead
If things do escalate via small claims court or your business insurance, you’ll need to gather evidence to defend yourself and this is why it’s important to document everything throughout the project
It will be difficult for the client to argue if you can show that you’ve adhered to everything in black and white

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Squidge Inc
Client not paying. What are the next steps to take?
The legal advice helpline is part of the legal expenses product. It's like having a law firm on retainer because you can call the helpline as often as you like to ask general legal questions relating to business matters
Due to the company winding down, David was having trouble getting paid
David wanted to explore the option of small claims court. The legal advice helpline guided him through everything from the potential cost to filling out the paperwork
David suggested writing down a list of questions you want to ask the helpline so that you can end the conversation knowing exactly what your next step should be
Because the helpline assisted David with the legal jargon involved around recovering debt, it showed his client that he was serious and knew what he was doing
David's client rejected the claim, but whilst in the midst of preparing all of the evidence he needed to pursue the payment with the help of the legal advice helpline he asked the client to resolve things amicably. They agreed
Client disputes aren’t always going to have the perfect outcome, but David was happy to compromise on an agreed rate so they could avoid small claims court
From his own experience and speaking to other freelancers, David thinks that the tipping point of having a client pay your invoice is showing them you're serious about going through small claims court
Document everything to show you've done the work, there was an agreement in place and there was a good relationship

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It’s not for you to decide how much liability is associated with a project
If a claim includes loss of income, compensation for hiring other freelancers and other costs incurred, it all adds up
If insurance doesn’t seem worth the price, ask yourself if you’d rather pay £14 a month for legal help, or thousands of pounds in upfront fees?
Remember that contracts don’t stop a client from making a claim against you, even if you include a liability clause
Episode #40 - Why having a contract isn’t enough to protect you
With every project there is always the risk of a client being unhappy with the work you’ve done or a project being delivered late
Your client may go into a project knowing that there are risks, but the whole reason insurance exists is to protect your business from the risks you face and ensure you don't come out of a situation worse off if the client holds you responsible
Sometimes there is little control you have over the situations that lead to claims as well as, more importantly, how your client reacts to those situations

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Most of the claims we see are to do with poor project management, either on the freelancer or client's side
This can cause friction in the working relationship and lead to clients feeling like they haven't got what they paid for
A difficult client relationship can also be down to a bad apple client who is always going to be difficult to please
One of most important aspects of a fulfilling freelance career is to learn how to set and stick to boundaries so have a contract, include a statement of work, have set hours you're available etc
However, the real test is how you react when clients try to take advantage of you
The way you respond to bad situations is important because it can be the difference between a smooth project that ends harmoniously and one you regret taking on
If you don’t set boundaries you’re teaching the client that it’s OK to undervalue you. If you do that certain clients will continue undervaluing you, pushing you closer to burnout and putting you under pressure
Some freelancers struggle with setting and sticking to boundaries because they don’t want to deal with conflict and feel uncomfortable telling a client “No”. Or there’s a fear of losing a client so freelancers are willing to overstretch themselves to accommodate their client
Being insured should give you the confidence to stand your ground with clients who try to mistreat you or extract more from you than has been agreed
If you stand firm and the client doesn’t back down, saying they'll take things that little bit further with a threat of potential legal action, that’s when your professional indemnity policy is triggered so you'd have help to navigate that situation
The practical element of insurance is getting affordable legal help should you need it, but it’s the aspirational element of being insured that most freelancers benefit from
Insurance should give you the confidence to stand firm with clients who are trying to take advantage of you, knowing that if they do push things that little bit further you have the help to get you through it

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Even as someone responsible for the website and not the product itself, there is nothing stopping an unreasonable client from blaming you if they get into trouble for their online presence
Whatever your role and the service you offer, with every project there is the risk of a client being unhappy with the work you’ve done. However, that risk is heightened with clients that have exhibited red flags like this one
Whilst you should have processes in place to ensure client's sign-off on your design, copy etc, there is nothing stopping the client from saying "That was your job and why we hired you. You didn't do the job we expected you to do"
When things go wrong, it’s easy for people to become defensive and shift the blame elsewhere. Clients are no different
At With Jack we've seen similar case where the freelancer's copy had a typo and, despite it going through quality control by the client, they didn’t pick up on it and blamed the freelancer
This is one of the reasons why professional indemnity insurance exists—to defend you against claims of actual or alleged negligence
Your professional indemnity policy might be able to help you defend these allegations by giving you access to legal experts who will negotiate with your client on your behalf. If damages have to be paid, your insurance could cover the cost of those too

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Keeping projects on time and managing client expectations
Scope creep is when the project scope of functionality changes mid-way through a project, often resulting in more cost and implementation time
Some clients may not factor the extra time additional work will take into the project’s timescale, and they may expect the developer to complete the additional work for free
The most common scenario is that the client is unhappy because the project runs over the expected timescale. This can lead to accusations of breach of contract
Another scenario is threats from the client when the developer highlights that a change of scope requires the budget and timescales to be revised
If accompanied with a refusal to pay the developer for the work they've done, this could trigger the policy's mitigation costs clause
Even if you don’t have to use the legal help that comes with your policy, being insured will give you confidence when dealing with clients and help you to stand your ground if they’re being unreasonable

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Professional indemnity policies are on a ‘Claims made basis’, which means the policy covers claims that are notified during the policy period. This is why it's important to maintain insurance even when taking a break from work
With some professions like web or software development, it’s more common for a mistake to be discovered weeks or months after the job is completed. This is why it's important to maintain insurance even after a project ends
You can lower the level of cover or remove cover you don’t need in between project, or put the policy into run-off. This covers work completed prior to the date your policy was put into run off and should reduce your monthly payments
Whatever you decide, just remember that you need to have an active policy in place when making a claim

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Know where you stand in terms of copyright laws, but preferably have a contract in place that leaves no room for confusion
If arguments ensue around copyright or IP ownership, refer to the copyright clause in your contract to show what was agreed to by both parties. In most cases this will resolve the argument
If your client tries to recover compensation from you—like in this instance where they wanted to recover the cost of hiring other freelancers—contact your insurer immediately
Your professional indemnity policy should be able to help you defend claims of copyright infringement, as well as provide you with legal experts to negotiate with your client in regard to their demands for compensation
Being insured gives you the confidence to stand your ground with clients who try to take advantage. If the client decides to escalate matters you have the support you need legally and financially from your insurer

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Being insured removes the need to seek advice from sub-reddits or Slack channels from people who aren't qualified to give you legal advice
Being insured removes the headache of searching for an appropriate lawyer who specialises in the area and jurisdiction you're experiencing a problem in
Being insured removes the financial burden of paying expensive legal fees
Being insured streamlines the process of reaching a resolution with your client if legal action is taken or threatened to be taken against you
Professional indemnity insurance starts at £14 a month if you’re a With Jack customer
Get a quote

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Contracts lay the foundation of what duties are to be expected of both parties, but insurance steps into action when those duties come into question
Contracts reduce but don't completely eliminate risk. Contracts can be breached and having a contract doesn’t stop a client from making a legal threat or asking you for compensation
If you’re unable to complete work, accidentally breach a NDA or delete client data, a client can sue you for breach of contract
If you’re insured, a legal expert would help you to defend those allegations and enter into negotiations with your client
Out of the last 5 claims at With Jack, 4 of them had a contract in place. It’s clear that having a contract doesn’t prevent a client from making a claim against you
The professional indemnity policy has a breach of contract clause, and the legal expenses policy has a contract dispute clause

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Manage cashflow. If your cashflow isn’t great you’re going to make poor decisions such as saying yes to projects you wouldn’t normally accept, scrambling for work and taking on red flag clients
Use tools like Cushion and Xero to help you manage your cashflow
Regularly back-up work. Hardware problems can lead to lost work, or client data may be accidentally deleted. Both of these scenarios can lead to insurance claims, either for data recovery service or compensation to unhappy clients
Use tools like Backblaze and Arq to regularly back-up work
Get insured. Insurance is there to help you legally and financially if you have a problem with a client such as project delays, poor project management, scope creep or sometimes just a bad client who is impossible to please
Always work with a contract. Referring to what was agreed in the contract can sometimes diffuse potential problems. Contracts help to give the project clarity, remove nasty surprises and keep everyone on the same page
However, having a contract doesn’t completely eliminate risk and claims can even arise for breach of contract
Check out Bonsai for contract templates and e-signing
Keeping on top of your skillset is a great reason to evaluate and increase your rates regularly, plus certain industries move quickly and demand can change. Refining your skillset keeps you relevant
Keep networking and look for work before you have availability. Send out a reminder that you have availability in X amount of weeks with a link to your portfolio (inspired by How To Avoid Being A Bad Contract Developer)

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Professional indemnity is a product helps you if you give poor advice or don’t provide work to a certain standard (and remember, standards are subjective so there’s nothing stopping your client from having unreasonable expectations!), and your client threatens you with legal action or asks for damages
Public liability insurance covers you for accidents and injuries to clients or members of the public that happen as a result of your work activities. Most of our customers work remotely, but because it's a cheap cover and a lot of client of clients require you to have it, many freelancers add it to their policy for extra peace of mind
Contents insurance is our most used product in terms of the quantity of claims—mostly for accidental damage, followed by theft. There’s also another useful feature where the insurer will cover the cost of reconstituting data that’s been lost or compromised
Legal expenses insurance has a ton of useful features like a debt recovery service, tax investigation cover, legal advice and documents
There are lots of other insurance products available. Spend time thinking about what you’re worried about in your business, what risks you think you might face and seeing if there’s an insurance product that can help limit the impact of those risks should they happen

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Laura's portfolio
Deadlines work both ways. It’s important to get feedback from a client on time so you can stay on track for the project duration
The timeline helps keep everyone accountable for their role in the project, including client feedback, signing off on revisions or providing deliverables
The Schedule of presentation and delivery dates should all be included and agreed upon in the initial contract
Anything that falls outside of the scope must be discussed as how it would affect or lengthen timescales
Make sure you have something in your contract to protect you if clients go quiet and the project stalls. If a client doesn’t meet the deadlines, you should be allowed to withdraw from the project and be paid for the work you've already done
When it comes to keeping projects running on time don’t underestimate basic time management skills. This is just as important as being a skilled designer, developer, illustrator etc
When it comes to making sure client expectations are met, this means getting everybody on the same page at all stages of the project. This is why a project scope is so important
The scope should highlight things like how many rounds of revisions are included. Anything requested outside of the contracted scope will be billed at an additional rate and, of course, impact timescales
Don’t overpromise and underdeliver. Having a schedule, client presentations and only working on one or two projects at a time can give you a good idea how much work is involved

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Your contract should give clarity around ownership by highlighting who owns the IP and on what basis it’s used. This should be agreed to before the project begins
If your client refuses to sign your contract, stick to the simple rule of 'no contract, no work'
Without a contract highlighting who owns the IP, this can lead to clients threatening legal action if the IP isn't handed over
This threat of legal action can trigger the professional indemnity policy
The developer was given legal experts to assist them in organising and preparing for a meeting with the client where a resolution was agreed. The cost of this legal advice was covered under the professional indemnity policy
It’s also possible that—had the client not payed the freelancer’s invoice—the insurer would have covered this under the mitigation costs clause. You can find out more about the mitigation costs clause in episode 35
Your legal expenses insurance gives you access to legal documents including a consultancy agreement
Bonsai provides free contract templates
Contract killer is an open-source contract popular in design circles

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The mitigation costs clause is one of the most used features of the professional indemnity policy
If your client isn’t happy with the work you’ve delivered, refuses to pay your invoice and accompanies that refusal with a threat, the insurer will pay you the money owed to you
Usually claims arise due to other factors, but if the client is threatening to make a claim then there’s a high probability they’re not going to want to pay the freelancer. This is why the mitigation costs clause is such a useful feature
There is cover for unpaid invoices under the legal expenses product, where a solicitor chases overdue invoices on your behalf, but that’s a separate product. The mitigation costs clause in the professional indemnity policy will only spring into action if the refusal to pay is accompanied with a potential claim

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Projects that you do as favours have a tendency to become difficult because there isn’t infrastructure in place to treat it like a proper job. Have a contract and statement of work to ensure boundaries are set and not overstepped
Your statement of work should be comprehensive in covering what is and isn’t included. How many drafts will the client receive? How many revisions are included? What services are excluded?
If a client barters on price, you then have to reduce the scope of work. Those two things go hand in hand. Reduced budget means reduced scope
With clients who micromanage you need to step up and lead the project to instil confidence in them. A statement of work and contract can define and help to put their mind at ease, or using a tool like Trello where they can follow your progress without breathing down your neck
If the scope starts to change, highlight that it’s beyond the scope of this project and agreed rate. Provide a quote and contract and offer to book the work in. Do that every time they shift the goalposts of the scope
As part of your legal expenses insurance you have access to legal documents, including contracts. If you want to take your contract to the next level you can pay an additional fee to have a lawyer review it
If this does escalate to a potential legal problem, you can use the legal advice helpline that comes with your legal expenses insurance to talk to a legal expert

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Be fair and accommodating with your clients. Especially if things do escalate, it will stand you in good stead if you’ve been co-operative
Being co-operative means ensuring you give clients multiple dates you’re available instead of just one. If not, it’s unlikely you are within your right to exercise your cancellation policy
It works both ways. Your client needs to provide multiple dates as opposed to just one. If they give you a limited option or reschedule without consulting you on your availability, they should expect you to exercise the cancellation policy and lose out on the money they’ve paid
If a client wants a refund refer to your cancellation policy
Some wedding insurance providers are covering deposits, so it’s worth highlighting this to your client if they haven't explored that avenue already
Consider offering a settlement as a goodwill gesture. For example, you’re happy to refund X amount but retain the deposit
Before you do this, I would urge you to use the legal advice helpline that you have as part of your legal expenses insurance and talk over your options with a legal expert
If things do escalate to legal action from your client, there is some cover under the legal expenses policy for contract disputes. A solicitor will get involved and negotiate with your client on your behalf
Above all else, be fair with your clients and be accommodating, but also understand your rights just in case things do get messy

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You don’t have to do something illegal to upset a client and have them threaten you with legal action
Backups should be a basic part of your workflow. BackBlaze, SnapShooter and Arq are good places to start for services that help you keep client data safe
Make sure your terms outline the responsibilities of both parties so that when situations like this do arise (a client moving their website to another host) you know exactly what is expected of you and how to deal with it to avoid messy situations
Professional indemnity insurance is the policy that would help you if you make a mistake in your work that leads to a legal threat. Whilst the insurance doesn’t help you recover the deleted database, it does give you access to legal experts that can help negotiate with your client and cover the costs of any compensation they're demanding as a result of your mistake

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Avoid unlimited revisions by specifying how many revisions are included in the initial cost in your contract. Further revisions cost an additional fee
Avoid fixed fee projects unless it’s for a small job with a quick turnaround. Fixed fee projects don’t take into account any changes to the scope and the subsequent cost in doing that extra work
If you feel like your client is being unreasonable, politely communicate this in a way that shows why they're being unreasonable. For example, you can't work for free, you can't work outside the scope of the contract without revising the budget etc
Take advantage of the legal advice helpline that’s included with your legal expenses insurance. This can give you practical guidance in dealing with client or contract disputes

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If you’re hired to fulfil a brief where you’re asked to draw inspiration from another design, be wary of copyright infringement
Set design expectations with your client prior to the project beginning. For example, if assets like original photography and unique illustrations were used to achieve a look and feel, the client should take this into account. If they don’t, it’s unlikely you’ll be able to recreate a similar style and therefore not meet client expectations
This leaves you open to claims from unhappy clients
Refunds are not covered under your professional indemnity insurance, but in this case the request for a refund was accompanied alongside a legal threat which did trigger the policy
The insurer originally suggested offering a settlement to diffuse the situation, but the freelancer wasn’t keen on that
Instead, the insurer helped the freelancer draft various letters to the client, achieving an outcome the freelancer was comfortable with
Being insured gave this freelancer confidence in dealing with the situation and negotiating with their client

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Some boilerplate contracts have insurance clauses that are given to all vendors, so they might seem OTT for a freelancer
Whilst you should be insured, if the level of cover seems high or the policies they’re asking you to have are unreasonable to you as a freelancer, remember that contracts are there to be negotiated
Compromise on the level of cover. If they’re asking for £10m, what about suggesting £1m or £2m? In most cases, you’ll find clients are happy to compromise
This keeps your insurance premium in the low hundreds instead of thousands

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Legal fees become affordable because lots of freelancers are putting a little bit of money into a pot, so that when a small percentage of freelancers face a legal issue they can take money out of the pot. You’re exchanging the possibility of expensive, upfront legal fees for the certainty of a lower cost
‘Claims made basis’ means the policy covers claims that are notified during the policy period, which isn’t necessarily when the incident occurred. This is why it's important to maintain insurance for a period of time after you stop trading or finish job. In some industries it’s common for a mistake to be discovered weeks or months after the job is completed
A retroactive date is a date in the past which your insurer has agreed to cover you from. This is usually the date you bought insurance
Are you covered for work outside of the UK? Check your policy's jurisdiction in the policy documents. Most PI policies exclude US jurisdiction by default
The excess only applies to damages—not legal fees. If your claim triggers the mitigation costs clause, your excess will be deducted from the amount paid to you by the insurer

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Don't reassure threatening clients that you have insurance. They might end up making a bigger claim if they know there’s a substantial pot of cash to back that up
Send a holding email. This gives you time to take a step back and gather all of the information you need, instead of replying in an emotional and possibly defensive state
Gather documents like contracts, client communication and project scopes that give the client's claim context (bonus points if you have information that disputes their claim or helps to strengthen your defence)
Provide all of that information to your insurer along with an overview of the situation. If covered under your policy, they will appoint legal experts to help you

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Have proper payment terms instead of invoicing for work after it’s been delivered. Invoicing after work has been delivered gives the client a chance to change their mind
Have stricter measures for dealing with clients who cause disruption to the project by ghosting you or going off the radar. One of these measures could be a pause clause in your contract
Don’t fall into the trap of absorbing costs or offering to do extra work for free. Many clients will capitalise on this and take advantage
Stick to the agreed terms in your contract so that the contract can't be abused
Plan and budget the project scope as best as possible prior to a project kicking off. Your client ca see exactly what they’re getting and make any changes to budget and scope if need be prior to the project kicking off
Specify in your contract how long you’ll retain client files or assets for before deleting them
If there is no claim as yet, phone the legal advice helpline as part of your legal expenses insurance for practical advice to guide you through the situation
If things do escalate, the helpline can initiate the legal process and pass those details through to the claims team
If covered, your insurance will provide legal assistance in the form of a solicitor to help you defend the claim

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Red flag #1: Clients who want the moon on the stick. These clients want everything and have unreasonable demands. They're never going to be satisfied and unhappy clients can lead to claims
Red flag #2: Clients who don’t respect boundaries. This can damage the relationship between the client and freelancer. A poor working relationship can lead to all kinds of problems
Red flag #3: Clients changing their mind. Bad project management can lead to clients changing their mind, making it difficult for the freelancer to know what work to deliver. Not meeting client expectations—regardless of who is at fault—can lead to claims
Red flag #4: Clients who won’t agree to terms in writing. No contract or terms agreed to by both parties means everything is negotiable and this is dangerous
Red flag #5: Clients who negotiate on pricing. Whilst it's normal to have a budget, clients who obsesses over pricing, discounts and freebies are likely to undervalue you
Red flag #6: Clients who ghost you. If a client goes off the radar it shows they aren't taking the project or you seriously. Implement a pause clause in your contract to incentivise clients to stay on track and never start work without a deposit

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Poor project scopes allow clients to shift the goalposts of the project meaning you try to cram work you didn’t plan for into the same budget and timescale. This can result in project milestones being missed, which can cause a claim being brought against you
Poor project scopes can lead to confusion around what work is to be expected meaning the freelancer and client are on two different pages. This can result in the relationship breaking down, which is another cause of claims
Not having a contract can make it difficult to take control of a situation that’s gone wrong (what payment terms have been agreed, who own the intellectual property. Contracts make it easier to resolve disputes). When something isn’t clear, disagreements between the client and freelancer occur and that’s when third-parties like solicitors get involved
Clients who try to get you to discount or work for free are generally bad clients
If you don’t have confidence in your pricing and try to please clients by throwing in extra work for free or discounting, some clients will take advantage of this. This is another cause of client relationships breaking down

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Take a firm stance but avoid the conflict that comes with making a legal threat by sending late payment reminders
If you have legal expenses insurance you'll have access to professionally written templates
If the late payment reminder doesn't work, send a final 'letter of claim'. This template is available with your legal expenses insurance and includes the information sheet, reply form and financial statement form that you need to give to the debtor before you can go to court
The other option is to use the debt recovery service included with your legal expenses insurance. An expert lawyer will formally chase your debt for you
Make sure you document everything—from contracts that state payment terms to what reminders you've sent the client and when
There is the option to go through small claims court, but it isn't always successful
Even if you win the case, it doesn't guarantee you'll be successful in recovering money from your client
Mitigate the risk of non-paying client as much as possible by working with a contract, preliminary payments and strict payment deadlines

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Maintaining our mental health
WFH daily
AnyForty Instagram
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To ensure projects run smoothly, make sure there's a realistic schedule so there's no conflict with missed deadlines
Detail each step of the project and what's to be expected by both parties
Let the client know what deliverables you need and when you need them by
Don't start work until a deposit has been paid
In this situation, the freelancer started work without the deposit or deliverables and had trouble reaching the client
It's important not to ignore red flags such as clients avoiding contracts or being difficult to get a hold of. This doesn't get the relationship off on the best start
If your client threatens you with legal action, notify your insurer as soon as possible if you have professional indemnity insurance. Professional indemnity insurance will cover your damages and expenses if a claim is made against you
In this situation, the client wasn't asking for damages or compensation but it's still important to notify the insurer
Instead there's the matter of work having been done without payment, so there is the option to use the fast track contract dispute service that’s provided with your legal expenses insurance
Make use of the legal advice helpline that you get access to as part of your legal expenses insurance. Seek advice on client and payment disputes at no cost

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Contract and debt recovery clause: If a client isn’t paying you, a solicitor will formally chase your overdue invoice for you
Loss of earnings clause: This would cover your loss of earnings due to your absence from work if attending jury service where those costs can’t be claimed back from the court
Tax protection event: This clause provides expert tax advice and assistance in relation to disputes with HMRC
Legal advice helpline: Access to a 24/7 legal advice helpline is included. This is for general queries arising from any business related matter including debt recovery and contract disputes, tax enquiries and general legal matters relating to EU law

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If your equipment is damaged your contents insurance will kick into action
Natural wear and tear is not covered, so make sure you’re not relying on old equipment and have multiple back-ups
When the recovery wasn’t successful and client footage was lost, the client wanted compensation to protect their reputation and recoup the costs they’d lost
Your professional indemnity insurance could be triggered if a client seeks compensation from you
If the filmmaker didn't have insurance, he would have paid out just under £9000

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The two common questions we've been receiving are;
- If I fall ill or have to self-isolate, will my insurance cover my loss of earnings?
- If work is cancelled due to Coronavirus, will my insurance ensure I’m not out of pocket?
In terms of loss of income due to illness, please research income protection insurance
Professional indemnity insurance does not cover loss of earnings from cancelled work. This product would help you to defend yourself if a client threatened you or tried to recover damages from you in relation to your professional services
The ABI's guide on insurance and COVID-19
Make sure you have standard terms in your contract which would allow for cancellation due to illness or sickness. That would include self-isolation / quarantine
Having a network of fellow freelancers you can depend on if you fall ill is also a popular choice
Make sure you have a cancellation clause in your contract that outlines payment terms
Business interruption insurance isn't a product we offer on our website, but it would cover loss of earnings if your premises or equipment got damaged due to an insured peril such as fire or flood. The ABI has said that standard business insurance policies are designed and priced to cover standard risks and are therefore unlikely to provide cover for the effects of a global pandemic
If you have legal expenses insurance you have access to a confidential counselling assistance helpline. If you’re feeling anxious and stressed, it might be worth giving them a call and talking to a qualified counsellor

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You may have been driving for 10 years and have never had an accident, yet you wouldn’t start any journey without wearing your seat belt. That's how you need to think of insurance
Insurance steps into action when your duties come into question
Contracts and insurance aren’t binary. It shouldn’t be one or the other. You should have a contract. And you should have insurance
Freelancers have many responsibilities ranging from meeting deadlines to ensuring clients are happy with your work. Being insured protects you in case these responsibilities aren't met

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Your professional indemnity policy will pay the legal fees associated with defending yourself
You'll also be covered for claims of copyright infringement
Best practices to avoid unintentional copyright infringement
The mitigation costs clause means the insurer will pay you the amount owed to you by your client if they believe this will avoid a claim for a greater amount
The insurer will pay damages to a client seeking compensation in the event of a mistake or error in your work
Breach of contract covers you if your client pursues you for damages due to an agreement in the contract not being met

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Pixabay and Unsplash are just two royalty free resources to get assets from
If you're a designer, avoid using licensed work in your designs
Create a document that outlines your process for using third-party content, and keep proof of purchase when buying licenses
Your professional indemnity insurance covers unintentional copyright infringement, so contact your insurer if you're accused of infringement

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The legal advice helpline that’s included in your legal expenses insurance can provide advice on dealing with client disputes like this
Avoid the temptation to work for free or offer a discount. Clients take advantage of this and the situation can break down further
Refer back to your contract and scope of work to show you've satisfied all conditions therefore a refund isn't warranted
Professional indemnity insurance won't cover refunds, but it can give you the confidence to stand up to clients. “I’m sorry you're not happy, but I delivered the work that was agreed.” If the client pursues further action by making a threat or claiming damages, your professional indemnity insurance would then be triggered

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Things like poor payment terms, no project scope or contracts contribute to projects going wrong
Use Bonsai for free contract templates or the templates included with your legal expenses insurance
Listen to episode 7, 'Client wants me to finish our project and is asking for damages', for more detail on project scopes
Don't be afraid to negotiate payment terms that work for you
If your client is looking to recover damages this would trigger your professional indemnity policy
The insurer's legal experts will negotiate with your client on whatever damages it is they’re asking for, and the cost of the legal experts as well as the agreed damages would be covered by your insurance
Document all client communication
Send your client a letter of claim for an outstanding invoice as a last resort, or use the late payment chasing service included in your legal expenses insurance
Trust your instinct if a client is showing red flags before you begin working together

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How insurance helped this developer fight scope creep
Provide the insurer with details of the situation, what the monetary loss is, contracts and any communication to strengthen your case
The insurer will appoint lawyers to help you
The lawyers will negotiate with your client to reach an agreement—the cost of which is covered under your policy as well as any damages owed to the client
You get the legal protection of working at a big company, and avoid having to shop around for legal experts and pay expensive fees

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Hidden App
Home insurance policies exclude equipment used for business by default so have a dedicated business contents policy for equipment you use for work
Alternatively ask your home insurer to add a business equipment endorsement to your policy
Business contents policies usually have meatier cover and claims are settled quicker so you can get back to work
Disclose information such as “I work from home" or "I have a garden office” else your home insurer might reject your claim
Most of our contents claims are accidental damage-related—not theft

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There’s a change in legislation that ensures HMRC can seek to recover any employment tax liabilities if a business fails to comply
This can affect freelancers operating under a limited company as it applies to off-payroll workers
There is insurance called legal expenses that can help you if there’s a dispute or enquiry from HMRC relating to IR35
A tax specialist will help you defend the enquiry and the insurance will cover the cost of a dispute with HMRC
There’s also a tax helpline you can call at any time with concerns about complying with HMRC IR35 regulations
Every insurer is different, but With Jack customers can expect to pay £65.71 per year for this cover

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Don’t panic. Emotional, knee-jerk responses to unhappy clients rarely end well. Take some time out before you formulate your reply
Don’t admit liability or offer a refund. Offering a refund could complicate matters from a legal perspective and hinder the negotiation process if you need to use your insurance
Don’t sweeten the deal by offering to throw things in for free. This usually leads to the client taking advantage and the project breaks down even further
Do contact your insurer. You can use the legal advice helpline as part of your legal expenses insurance, or file a professional indemnity claim if there's the threat of legal action or a monetary loss
Do gather information that can support your case. This can help lawyers defend you, or it can strengthen your stance when dealing with unreasonable clients (e.g. "That wasn't in the contract", "This isn't included in the project spec")

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Review your policy at least a couple of times a year to see if there are any gaps in your cover
Write down what concerns you have in your business and ask your insurer how your policy could help you with those concerns e.g. "I'm concerned about cashflow if a client doesn't pay me"
Be aware of your policy exclusions. These are listed in the policy wording
Contact your insurer as soon as you're aware of any problems, but the policy will be triggered when there's a threat of legal action or a demand for compensation

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It's your job to communicate with clients
Discover as much detail in advance of the project beginning
Communicate that the scope and the budget are connected
Have the client agree to these terms in your contract
Professional indemnity insurance can help you if things progress to the stage your client is asking you to pay damages to the company

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Every insurer has different requirements when determining your eligibility to get covered—one of those may be you need a contract
Get into the habit of documenting your process. Edits, comments, requests…
This can be via email or working collaboratively via a project management tool
Always have a contract!

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The insurer considers a 'circumstance' a complaint or criticism from a client, or a mistake in your work. This is when you want to contact your insurer
Your professional indemnity policy will be triggered when you receive a demand for compensation from a client or a threat of legal action
If you want assistance before a situation has escalated, consider using the legal advice helpline as part of your legal expenses insurance
If in doubt, contact your insurer

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Always. Have. A. Contract.
A project scope will give the project structure. This helps to prevent scope creep
Don't work for free! In most cases the client will take advantage
Because the client is claiming compensation for hiring other freelancers, your professional indemnity insurance might help

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Have payment terms that incentivise clients to keep the project moving, such as billing to specific dates
Add a 'pause clause' to your contract
If your client is unhappy with the progress and their refusal to pay is accompanied with a threat, contact your insurer. Your professional indemnity insurance might be able to help
If your client is claiming loss of income due to missing a deadline or asking for compensation to hire other freelancers, contact your insurer. Your professional indemnity insurance might be able to help

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You're responsible for delivering work to a timescale, and providing work that meets client expectations and standards
Projects get derailed, clients can be difficult to keep happy and mistakes can be made
Insurance removes the stress of searching (and paying) for legal help
It gives you confidence when dealing with clients because you won't suffer the financial consequences if things do escalate
You have a world-class legal team fighting your corner so situations with clients are diffused quicker
Contracts are useful for laying down the foundation of what duties are to be expected. Insurance steps into action when those duties come into question

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Late payment charges
The mitigation costs clause within your professional indemnity insurance means the insurer will pay you the amount owed to you if they believe this will avoid a claim for a greater amount
The 'debt recovery' clause within your legal expenses insurance provides you with a solicitor to chase debt on your behalf
Make a court claim for money

Unsure? Insure!: Recent Episodes

Ashley Baxter