I had the email. “Approved for print!” the client wrote. I sent the files. 10,000 brochures arrived with a critical pricing error ($100 instead of $1,000). The client is suing me for the $20,000 reprint cost, claiming “I hired you to be the expert, I shouldn’t have to catch your mistakes.” I waved the signed proof at my monitor, but the lawyer said it might not matter.
Key Takeaways
- Comparative Negligence: The law often splits the blame. The court might say you are 60% responsible (for making the typo) and the client is 40% responsible (for signing it). You still pay 60%.
- The “Expert” Standard: You are held to a higher standard than the client. A “prudent designer” checks for typos.
- The “Hold Harmless” Clause: If your contract doesn’t have a specific clause stating “Client signature releases Designer from all liability,” the signature is just an approval to proceed, not a legal release.
- Insurance pays to argue this: The main value of E&O here is paying a lawyer to argue “The signature matters” to lower the settlement.
The “Why”: The Standard of Care
The Trap: Designers think a signature is a magic shield.
The Reality: In a professional liability suit, the question is: “Did the designer act with the skill expected of a professional?”
If you pasted the wrong text, you failed that standard. The client’s failure to catch it is secondary.
Insurance carriers look for the “Limitation of Liability” in your contract. If you don’t have one, they have to fight harder (and pay more) to defend you.
The Investigation: I Quoted 3 Major Carriers
1. BiBERK
- My Analysis: They are strict. If the error is clear (typo), they often prefer to settle quickly rather than fight a “he-said-she-said” about the proof. They focus on the error, not the approval.
2. Victor (Schinnerer)
- My Analysis: They specialize in design professionals. Their lawyers are experts at using the “Signed Proof” defense to reduce the claim payout. They know how to leverage “Contributory Negligence” laws.
3. Hiscox
- My Analysis: Hiscox generally backs the freelancer. If you have a documented sign-off, they will use it to beat down the settlement offer, but they warn that it’s not a “get out of jail free” card.
[IMAGE: Screenshot of a strong “Proof Approval” clause in a contract]
Comparison Table: Defense Strategy
| Carrier | Strategy | Value of Proof Sign-off | Best For… |
| Victor | Aggressive Defense | High | Architects/Designers |
| Hiscox | Negotiated Settlement | Medium | Freelancers |
| BiBERK | Quick Payout | Low | Volume Claims |
Step-by-Step Action Plan
- Retain the Paper Trail: Save the email thread with the timestamp. “Approved” needs to be unambiguous.
- Check Contract for “Limitation of Liability”: Does your contract say “Liability limited to the cost of the project”? If yes, send that to the insurance adjuster immediately.
- Notify Carrier: Even with a sign-off, you need them to write the legal letter telling the client to back off.
- Do NOT offer to pay half: Let the insurance negotiate the split.
FAQ
Why do I need insurance if I have a contract?
Because clients sue anyway. The contract is your shield; insurance pays the soldier (lawyer) to hold the shield.
Can I sue them for the unpaid balance?
Yes, see the “Counter-Sue” article.
Does a “Final Proof” stamp work?
It helps, but only if the client actually signed it. Passive approval (“silence”) is weak defense.