As vendors, clients are your direct contacts and it is normal for arrangements not to always go as planned. Some unforeseen issues can come up; some can be solved amicably and others might escalate to the extent of law suits. In order to be safe from these circumstances, you need to include your terms and conditions in your contract which will safeguard you if something goes wrong. That is why you need to learn about liability insurance.
According to Wikipedia, liability insurance (also called third-party insurance) is a part of the general insurance system of risk financing to protect the purchaser (the “insured”) from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy. Liability insurance is designed to offer specific protection against third-party insurance claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. You can get a lawyer to help you draft a contract and your terms and conditions which you will need in your interactions with your clients. This helps to minimize losses and any future problems. You must also do well to live up to your part of the bargain. If you agree to work with a client for an event, make sure to show up because if you do now, they are at liberty to demand a refund. Some may even sue you for failure to fulfill your contract.
Some of the terms and conditions you should consider in your contract include refund issues, price range, how to book you, what will happen if you’re unable to fulfill your duty etc. this makes it easier for the client to know and understand what your services are. This also shows that you know your stuff. You also get to prevent any trouble because you and the client are not bound by the contract. Many small businesses do not secure general or professional liability insurance due to the high cost of premiums. However, in the event of a claim, out-of-pocket costs for a legal defense or settlement can far exceed premium costs. In some cases, the costs of a claim could be enough to shut down a small business. It is recommendable to visit a trusted insurance company to help you secure your business and help you make decisions which would help protect you, your client and your business just in case anything happens in the execution of your work.