Unsure? Insure!

Red flag client threatening to claim damages


Listen Later

  • With Jack
  • 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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Unsure? Insure!By Ashley Baxter