What a freedom a self-employed person has! No accountability to a boss, always scheduling his own time and only doing work that he gets excited about. Now that's a dream job! Unfortunately, uncertainty is always a part of being self-employed. Will enough orders come in? Will the customer be satisfied? And what happens if he does (very humanly) make a mistake?
A ZZP'er with a consulting profession such as interim manager, controller or broker will have to think carefully about the consequences of any professional error. After all, no matter how good he is, a mistake everyone makes from time to time. Examples of such risks are giving wrong advice, providing incorrect or incomplete information and violating intellectual property rights. Damage claims with high legal costs and damage to reputation can be the consequences. And that could just mean the end of your existence as a self-employed person. How can you prepare?
Put time into your Terms and Conditions. Make sure the service you provide is well covered in them. Don't settle for general descriptions but make sure they are customized. When a dispute arises, the Terms and Conditions ensure that you cannot be accused of just about anything.
In the agreement between you and your client, make it clear what obligation you are making. A result obligation is riskier than an effort obligation. Make sure that the General Terms and Conditions are mentioned in the agreement. By signing the agreement or quotation, your client is thus familiar with the General Terms and Conditions.
One option is to create a piggy bank in case a client is not satisfied with the outcome of your services. This can only be done if you expect that the damages can never be high. Better to take out professional liability insurance (BAV). This covers all property damage resulting from professional errors. Some clients or intermediary agencies already require professional liability insurance. The BAV also lends your company a professional image.
Questions? Contact us if you want to know more.
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