Why Liability Clauses Matter Without limitations, freelancers can face claims far exceeding project value for issues outside their control. Standard Liability Provisions Cap liability at project fee amount Exclude consequential damages Define warranty period Specify covered vs. uncovered issues Professional Liability Insurance E&O insurance provides additional protection beyond contractual limitations. Costs typically range from $500-$2000 annually. Sample Language "Designer's total liability shall not exceed fees paid under this agreement. Designer is not liable for consequential, indirect, or incidental damages."