I never ignore the "Low Risk" projects

Happy New Year!!

This past week, I reached a milestone: 6,000 followers on LinkedIn!

It feels surreal to think that so many people are interested in what I share about the legal aspects of running a business.

Just a year ago, I never imagined reaching even a fraction of this number.

To be fair, there's something that I learned because of this. Growth - whether on social media or in business - is a step-by-step process.

There’s no cheat code. There's no "magic hack". It all comes down to consistency, learning, and protecting what you’ve built.

This brings me to today's topic, which I'd like to discuss. Liability in IT projects.

Many IT project owners underestimate the importance of liability, particularly for what they consider "low-risk" work.

The client may seem easygoing, the project may look straightforward, and everything might feel manageable - until it isn’t.

The Liability Trap No One Sees Coming

It usually goes something like this:

You jump into a project that seems pretty straightforward - like building a basic SaaS tool or doing a small system upgrade.

But then, out of nowhere, things start to go wrong. A delay hits, and delivery gets pushed back.

The client misses an important deadline. Suddenly, they’re coming at you with blame. “We lost a big investor because of your delay,” they say.

And now they want damages - like way more than what the project was worth. What kicked off as a low-risk gig has turned into a total legal and financial mess.

Why Liability Limits Aren’t Just for Big Projects

Liability clauses in contracts aren’t about predicting the future. They’re about protecting yourself from the worst-case scenario.

Because when things go wrong, they go very wrong. Even on projects that seem harmless, the ripple effects of a misstep can catch you off guard.

And the harsh truth is - no matter how good your work is, clients will always act in their own best interests when things fall apart.

That’s why liability limits are non-negotiable.

My 3 Steps to Protect Yourself

Then what can you do? Well, I suggest these 3 steps to protect your business without creating friction with clients:

1) Set Clear Caps

Always tie liability to the project’s value. For example, include a clause stating that damages can’t exceed the total amount paid for the project.

This creates a fair boundary for both you and the client.

2) Use Deliverables as Checkpoints

Break the project into phases, and link liability to specific milestones. If disputes arise, you can point to completed stages as a defense.

3) Match Liability to Your Insurance

Don’t promise more than you can cover. Ensure that the liability cap aligns with your business insurance.

That way, you’re not scrambling to cover damages out of pocket.

But what about client pushback? Some clients might resist liability limits. Then the way you handle it is simple.

Explain that liability clauses are not about mistrust; they are intended to ensure fairness.

You are protecting your business while still being accountable for the work you deliver.

Most reasonable clients will understand this perspective. As for those who don’t, they may be the ones likely to cause trouble anyway.

The Bottom Line

It’s easy to overlook liability clauses, especially on smaller projects. But the thing is: A single unchecked liability can undo years of hard work.

I've seen it time and time again. This is why people normally get legal help to fix a mess and then some. The mess that could have been avoided.

So, take the time to include clear limits in your contracts.

Because in business, it’s better to have safeguards you never need than to wish you’d put them in place when it’s already too late.

And if you’re ever unsure about how to structure liability in your contracts, let’s chat. Just reply "PROTECT" and I'll send you ways we can work together.

Because protecting your business is always worth the extra effort.

Talk Soon,

Akhil Mishra