Unsure? Insure!

With JackEpisode #2: What's a freelancer doing that requires insurance?Episode #7: Client wants me to finish our project and is asking for damagesEpisode #48: Having a law firm on retainerEpisode #50: A first-hand account of pursuing a payment through small claims courtEpisode #46: Be a confident freelancerEpisode #37: Keeping projects on time and managing client expectationsEpisode #16: Professional indemnity insurance teardownApproach every single project with solid processes in place. Processes will help you manage common problems that arise in freelance projectsApproach 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 thatConsider 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

With JackPayment 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 ariseIf 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 dueIf the refund request is accompanied with a legal threat, it will trigger your professional indemnity policy so notify your insurerRefunds aren’t covered under your professional indemnity insurance, but the threat of legal action means the insurer will help you defend the claimAnother 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 disputesDocument 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 toBe 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

With JackInstagram: StckmnTwitter: StckmnWebsite: StckmnThe legal expenses product includes a debt recovery service and legal advice helpline to assist you with late paymentsChris 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 insuranceCircumstances 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 thisEpisode #48: Having a law firm on retainer

With JackEpisode #48: Having a law firm on retainerHave a contract. Get insuredThere are industries that invest a lot into pursuing copyright claims so be aware of licensing agreements when using third-party assetsCreating 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 lawsDocument everything. The job spec, details around the project, all client communicationHave confirmation of clients signing-off on work. This doesn't have to be anything formal—confirmation via email is OKIf clients ask to have a call about anything they’re unhappy with, suggest they put their concerns in writing insteadIf 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 projectIt will be difficult for the client to argue if you can show that you’ve adhered to everything in black and white

With JackSquidge IncClient 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 mattersDue to the company winding down, David was having trouble getting paidDavid 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 paperworkDavid 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 beBecause 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 doingDavid'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 agreedClient 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 courtFrom 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 courtDocument everything to show you've done the work, there was an agreement in place and there was a good relationship

With JackIt’s not for you to decide how much liability is associated with a projectIf a claim includes loss of income, compensation for hiring other freelancers and other costs incurred, it all adds upIf 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 clauseEpisode #40 - Why having a contract isn’t enough to protect youWith every project  there is always the risk of a client being unhappy with the work you’ve done or a project being delivered lateYour 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 responsibleSometimes 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

With JackMost of the claims we see are to do with poor project management, either on the freelancer or client's sideThis can cause friction in the working relationship and lead to clients feeling like they haven't got what they paid forA difficult client relationship can also be down to a bad apple client who is always going to be difficult to pleaseOne 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 etcHowever, the real test is how you react when clients try to take advantage of youThe 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 onIf 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 pressureSome 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 clientBeing 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 agreedIf 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 situationThe 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 fromInsurance 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

With JackEven 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 presenceWhatever 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 oneWhilst 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 differentAt 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 freelancerThis is one of the reasons why professional indemnity insurance exists—to defend you against claims of actual or alleged negligenceYour 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

With JackKeeping projects on time and managing client expectationsScope creep is when the project scope of functionality changes mid-way through a project, often resulting in more cost and implementation timeSome 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 freeThe 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 contractAnother scenario is threats from the client when the developer highlights that a change of scope requires the budget and timescales to be revisedIf accompanied with a refusal to pay the developer for the work they've done, this could trigger the policy's mitigation costs clauseEven 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  

With JackProfessional 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 workWith 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 endsYou 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 paymentsWhatever you decide, just remember that you need to have an active policy in place when making a claim 

With JackKnow where you stand in terms of copyright laws, but preferably have a contract in place that leaves no room for confusionIf 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 argumentIf 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 immediatelyYour 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 compensationBeing 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

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

With JackContracts lay the foundation of what duties are to be expected of both parties, but insurance steps into action when those duties come into questionContracts 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 compensationIf you’re unable to complete work, accidentally breach a NDA or delete client data, a client can sue you for breach of contractIf you’re insured, a legal expert would help you to defend those allegations and enter into negotiations with your clientOut 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 youThe professional indemnity policy has a breach of contract clause, and the legal expenses policy has a contract dispute clause

With JackManage 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 clientsUse tools like Cushion and Xero to help you manage your cashflowRegularly 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 clientsUse tools like Backblaze and Arq to regularly back-up workGet 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 pleaseAlways 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 pageHowever, having a contract doesn’t completely eliminate risk and claims can even arise for breach of contractCheck out Bonsai for contract templates and e-signingKeeping 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 relevantKeep 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)

With JackProfessional 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 damagesPublic 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 mindContents 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 compromisedLegal expenses insurance has a ton of useful features like a debt recovery service, tax investigation cover, legal advice and documentsThere 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

With JackLaura's portfolioDeadlines work both ways. It’s important to get feedback from a client on time so you can stay on track for the project durationThe timeline helps keep everyone accountable for their role in the project, including client feedback, signing off on revisions or providing deliverablesThe Schedule of presentation and delivery dates should all be included and agreed upon in the initial contractAnything that falls outside of the scope must be discussed as how it would affect or lengthen timescalesMake 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 doneWhen 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 etcWhen 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 importantThe 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 timescalesDon’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

With JackYour 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 beginsIf 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 overThis threat of legal action can trigger the professional indemnity policyThe 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 policyIt’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 35Your legal expenses insurance gives you access to legal documents including a consultancy agreementBonsai provides free contract templatesContract killer is an open-source contract popular in design circles

With JackThe mitigation costs clause is one of the most used features of the professional indemnity policyIf 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 youUsually 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 featureThere 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

With JackProjects 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 oversteppedYour 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 scopeWith 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 neckIf 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 scopeAs 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 itIf 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

With JackBe fair and accommodating with your clients. Especially if things do escalate, it will stand you in good stead if you’ve been co-operativeBeing 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 policyIt 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 paidIf a client wants a refund refer to your cancellation policySome wedding insurance providers are covering deposits, so it’s worth highlighting this to your client if they haven't explored that avenue alreadyConsider offering a settlement as a goodwill gesture. For example, you’re happy to refund X amount but retain the depositBefore 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 expertIf 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 behalfAbove all else, be fair with your clients and be accommodating, but also understand your rights just in case things do get messy