Unlimited Liability Clauses: The Freelance Contract Risk Nobody Reads
Why open-ended liability and indemnity clauses are dangerous for freelancers, and how to add a liability cap that protects you.
Of all the clauses in a freelance contract, liability is the one with the worst worst-case. A bad payment term costs you weeks of cash flow. A bad liability clause can, in theory, cost you many times what the project was worth. And it is almost always buried near the end where nobody reads.
What the dangerous version looks like
The warning signs are phrases like "without limitation," "any and all damages," and a one-way indemnity where you protect the client but they owe you nothing. Together these mean your exposure has no ceiling and runs in only one direction — toward you.
"Including but not limited to"
This phrase attached to liability or indemnity is the single biggest tell. It signals open-ended exposure: there is no cap on what you could be on the hook for.
The fix: a liability cap
The standard protection is a limitation-of-liability clause that caps your total liability at the fees paid under the agreement (or some multiple of them). It is one of the most common and accepted requests in professional contracts — most clients agree without friction because it is reasonable and mutual.
Worried your contract has this clause? fynPrint flags it in plain English in about 60 seconds — your first analysis is free.
Analyze free →Make indemnities mutual and bounded
If you must indemnify the client, ask for three things: that the obligation is mutual, that it is capped, and that it excludes claims arising from the client's own materials, instructions, or chosen vendors. You should not carry the risk for decisions you didn't make.
Exclude indirect damages
Also ask to exclude indirect, consequential, and special damages — things like lost profits. These are unpredictable and far larger than your fee, and excluding them is standard practice.
fynPrint specifically flags open-ended liability, one-sided indemnities, and missing liability caps, and gives you the limitation language to propose.
Frequently asked questions
What is a liability cap?
A clause that limits your total financial liability under the contract — commonly to the fees paid under the agreement. It prevents a small project from creating unlimited exposure.
Is it normal to ask for a liability cap?
Very. Limitation-of-liability clauses are standard in professional services contracts, and most clients accept a reasonable, mutual cap without objection.
What is indemnification?
An indemnity is a promise to cover the other party's losses from certain claims. As a freelancer you want any indemnity you give to be mutual, capped, and limited to things actually within your control.
Related reading
Check your own contract in about 60 seconds
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fynPrint is not a law firm. AI-generated analysis is legal information, not legal advice.