Freelancer? How To Protect Your Business From Legal Disasters

Image by StartupStockPhotos from Pixabay 

Image by StartupStockPhotos from Pixabay 

When you run a business, you’ll undoubtedly want to keep your operating costs down to the bare minimum. That’s also very important when you’re a freelancer because you don’t have the resources to pay for teams of employees in a slick city office block.

One of the areas where freelancers fall afoul is when legal issues arise. These might relate to anything from contracts through to copyright law, especially if a freelancer does creative work such as graphic design.

You’re likely reading this article today because you’re a freelancer and you don’t want to end up exposed from a legal perspective. You might not realize it, but there are many simple (and affordable) ways to protect yourself and your business legally. They are as follows:

Get your clients to sign contracts

The sad truth about freelancing is you’ll encounter some situations where a client complains you haven’t delivered what they wanted. The cause might be down to miscommunication between you both. Or, your client could be trying to scam free work out of you.

A simple yet effective way to lay down your terms of work and detail what you’re going to do is by getting your clients to sign contracts. Each contract should be tailored to each client and project, and you shouldn’t do any work until each client signs them!

If you’re unsure what to write in your contracts, check out https://www.legalscrolls.com. Alternatively, ask your peers online for help.

Take out appropriate insurance

Another essential thing you need to do as a freelancer is to take out appropriate insurance coverage. There are many policy types that you can get, depending on the products and services that you offer.

Irrespective of your industry, it makes sense to take out professional indemnity insurance. That way if someone tries to sue you, the insurance policy will provide you with legal advice and representation.

Check out https://www.aig.com for some examples of the different types of indemnity insurance you can buy.

Keep clear and concise records

When you run a business, whether you’re a freelancer or not, you’ll need to keep records of sales and expenses for tax purposes. It’s also essential to do that in case of any legal claims brought about by your clients.

For example, your client may demand a full or partial refund because they feel you overcharged them. By keeping clear and concise records, you’ve got the supporting documentation you need to defend any legal claims.

Ensure your website has clear terms and conditions

Lastly, problems might arise not from anything you’ve done but from the fact you haven’t set clear terms of business on your website. It can be a real problem for freelancers that deliver their services directly through their website.

Be sure to have clear terms and conditions on your site, and check that they’re easily accessible to the public. You can buy terms and conditions for your business site from websites like Rocket Lawyer.

How to Find the Perfect Office Space for Your New Business

Freelancers: Here Are 4 Reasons Why You're Overworked and Underpaid

0