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All about the mitigation costs clause
- With Jack
- 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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By Ashley Baxter- With Jack
- 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