This month was a mixed bag with late payments, corrupt data, questions around a contract and a mistake that could have been costly had the insurer not got involved.
“I didn’t have a contract because I trusted my client”
Two customers contacted us with payment issues, but neither had a contract because they trusted their client. Working without a contract can limit your options when recovering payment—especially if you want to use the debt recovery service included with your legal expenses insurance.
Data reconstitution is a useful feature of the contents policy
We had another data recovery claim where the freelancer’s hard drive suffered accidental damage and the data became corrupt as a result. The insurer will pay to have the data recovered by a specialist, which is quite a pricey process. These claims are most common with photographers.
Freelancer was guided by the insurer on how to minimise their liability
One of our freelancers made a mistake in their work. That’s OK—we’re human. It happens and this is why we have insurance! We’d call this a circumstance that may give rise to a claim since nothing triggered their professional indemnity policy, but the insurer helped guide the freelancer through the situation to minimise their liability and wrap things up.
Contract terms that made the freelancer feel uneasy
Sometimes you’ll have to sign a client’s contract instead of them signing yours. There were terms the freelancer didn’t feel comfortable with and wanted to understand more about. “How does this affect me? Should I be worried?” They made use of the legal advice helpline to learn more about what this meant for them.
