Why Freelancers Get Sued — And What You Can Do About It
Freelancing offers freedom, flexibility and a creative lifestyle many professionals dream of. But it also comes with responsibilities that are easy to overlook, particularly when it comes to legal risks.
While most freelancers wouldn’t think of themselves as vulnerable to lawsuits, the truth is, you’re running a business. Just like any business, you can be sued.
You might already know about the basics, like having clear contracts and delivering work on time. But there are lesser known (and often more surprising) ways that freelancers can face legal claims. The good news? With the right awareness, systems and insurance in place, you can stay focused on your craft, not courtroom drama.
Here are seven risks that catch many freelancers off guard and what you can do to avoid them.
1. Unintentional Copyright Infringement
You’d never set out to copy someone else’s work. But copyright issues aren’t always clear cut, especially in creative fields. If you use an image, music track, code snippet or even a turn of phrase that resembles another creator’s copyrighted work, you could be accused of infringement. That’s true even if it was unintentional.
Let’s say you’re a podcast producer using background music from a free library. If that track wasn’t properly licensed, you could be liable. Or maybe you’re a copywriter pulling in stats or phrasing from a client’s previous campaign without realising those assets are owned by a third party.
Professional Indemnity Insurance such as that provided by Mode Insurance can help protect you in cases like this, covering legal fees and claims if someone accuses you of copyright breach or intellectual property misuse.
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Your craft deserves the best protection. With Mode Insurance, you're not just getting coverage - you're gaining a partner who understands and supports your creative journey.
2. Defamation or Reputational Harm
This one often surprises podcasters, writers and consultants. If you say or write something negative about a person or business, even if it’s part of an honest review or commentary, you could be sued for defamation.
For example, a freelancer hosting a podcast might criticise a public figure or brand on air. If what you say can be interpreted as damaging and/or false, you may be held liable. The same applies to social media posts, blogs or even client content you ghostwrite.
It’s a good idea to double-check your facts and avoid speculation. Despite being diligent, mistakes can happen. This is another reason why Professional Indemnity Insurance is critical for freelancers working with words or media.
3. Breach of Contract
This is one of the most common reasons freelancers get sued and one of the easiest to avoid with strong processes.
A breach of contract doesn’t just mean missing a deadline. It could involve scope creep, delivering different results to what was promised, or misunderstanding client expectations.
Let’s say you design a logo and the client claims it’s too similar to another brand. They could argue you didn’t meet the brief, even if the feedback was vague. Or maybe you agreed to deliver a certain number of revisions, but the client disputes what was included.
Clear written agreements and detailed scopes of work are key along with saving all communication.
4. Injury or Property Damage at a Client’s Venue
If you visit clients in person for a photoshoot, consulting session or installation, there’s always a small risk something could go wrong.
What if you spill coffee on their laptop? Or a light stand falls and injures someone?
Even if you’re careful, accidents can happen, and when they do, you could be held responsible for damages.
That’s where Public Liability Insurance often comes in. It protects you if someone is injured or their property is damaged during the course of your work, including clients, venue owners or members of the public.
This cover is especially relevant if you’re a photographer, filmmaker, sound engineer or performer working on-site or in shared spaces.
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Your craft deserves the best protection. With Mode Insurance, you're not just getting coverage - you're gaining a partner who understands and supports your creative journey.
5. Lost or Damaged Equipment That Delays a Client Project
Many freelancers rely on expensive gear to get their work done, whether it’s cameras, editing laptops, audio kits or design equipment. If something breaks or gets stolen and you can’t complete a project, a client might try to hold you accountable.
For example, imagine you're a videographer and your main camera is stolen from your car before a shoot. You miss the deadline and the client loses out on a time-sensitive campaign. You could be sued for damages, even if the theft wasn’t your fault.
6. A Client Demands a Refund You Can’t Afford
Freelancers know the pain of tricky clients. Maybe you delivered everything as agreed but the client is unhappy and wants their money back. Or they cancel halfway through and expect a full refund, despite your time already invested.
If they decide to escalate things legally, you might find yourself on the receiving end of a claim, even if it’s unjustified.
Having a clear refund policy in your contract helps, but it doesn’t eliminate risk. Professional Indemnity Insurance can protect you against claims of poor service or undelivered work, even when the project didn’t go to plan due to client behaviour.
7. You’re Sued Because of a Third-Party Platform
If you rely on platforms like Fiverr, Upwork or even social scheduling tools and marketplaces, it’s important to read the fine print. Breaching a platform’s terms, for example, working with a client off-platform after being introduced can have legal consequences.
While most disputes will result in account suspensions, there’s a small risk of being pursued for damages, especially if the platform believes you’ve cost them significant revenue.
The lesson? Always check the Terms of Service, especially when you start using new tools or systems. And ensure your freelancer insurance covers scenarios where claims could arise from the tools you use to run your business.
The legal landscape can feel intimidating, but a few smart steps can go a long way:
✔️ Have clear contracts – Define scope, timelines, payment terms and what happens if things go wrong.
✔️ Keep everything in writing – Emails, chats and contracts protect you in a dispute.
✔️ Set clear expectations – Be upfront about what’s included in your service (and what isn’t).
✔️ Get the right insurance – At Mode Insurance, we offer insurance built for freelancers, not just big agencies.
From Public Liability and Equipment to Professional Indemnity, we help protect your business, reputation and finances - so you can keep doing the work you love.
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Your craft deserves the best protection. With Mode Insurance, you're not just getting coverage - you're gaining a partner who understands and supports your creative journey.
How to get covered
We make it easy. At Mode, we work specifically with freelancers, creative professionals, and small businesses - so our cover is built with your world in mind. You can speak to a real person, tailor your policy to fit your needs, and make changes as your work evolves.
Want to learn more?
Explore our other blogs for tips on insurance essentials for freelancers, or get in touch if you’d like to chat through your options. No jargon. No hard sell.
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Your craft deserves the best protection. With Mode Insurance, you're not just getting coverage - you're gaining a partner who understands and supports your creative journey.
Any views or opinions expressed above are for guidance only and are expressed in generic terms. They are not intended as a substitute for readers taking appropriate professional advice relevant to individual circumstances.
Written by
Josh Dumelow
Marketing & Insights Associate
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Your craft deserves the best protection. With Mode Insurance, you're not just getting coverage - you're gaining a partner who understands and supports your creative journey.