Design Risk Management: Contract Considerations

Posted on: November 8, 2017 by Huntersure LLC.

Design Firm Risks > Avoiding Contract Liabilities

In our previous post, we covered some of the major risk management strategies that design firms should utilize to minimize liability. The first thing we listed was contracts, which serve as the legality of the work to be performed. As this is a huge factor in acquiring or shifting liability, we’ve provided some insights for designers to incorporate in their contracts. As an agent and experienced broker, remind your clients of these important features when creating contracts to minimize Design Firm Insurance claims.


Providing estimates outlines the scope of work to be completed and how much money the client will owe. It’s important to note the terms of the estimate, however, to ensure the client does not feel overcharged. Be sure to specify in the contract language that the dollar amount provided equates to all listed tasks, and that if more work is required, the estimate will increase.


If the client is dissatisfied with how the design turned out, specify the number of revisions that are allowed before an additional fee is tacked on.

Turn-around time.

It doesn’t hurt to mention how quickly your client should expect to see completed work. This often comforts the client as they know they aren’t being ignored while waiting for a proof. This also requires that you, as the designer, stay on track and provide your clients with project proofs and deliverables in a timely fashion, says Envato Tutorials.


Should the client wish to cancel or vice versa, the contract should include directions for doing so. Specify how the deal with be paid and how the existing design will be handled. Be sure to incorporate a policy for returning items and personal property, if applicable, to round out the termination component.

Legal considerations.

Other items to think about may include how to handle a dispute should it arise, third-party involvement and which party would be responsible for any legal costs should they be incurred.

About Huntersure

Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (646) 751-3030 to learn more.

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