The lesson to be learned here is that anyone can sue anyone else at anytime and anywhere for any reason.
And if it's you, you have to defend yourself, which can be expensive, both in time, money and emotional energy.
No contracts, no ironclad clauses, no promises, no goodwill, nothing can prevent an unreasonable person (and who ever actually thinks they're being unreasonable?)
Insurance helps by minimizing your financial liability if you're found at fault or usually settling in mediation or arbitration before actual court proceedings.
BTW, mediation and arbitration clauses do some good in offering possible shortcuts to a lengthy and expensive lawsuit but they still cost something and may not satisfy your need for "truth, justice and the American Way."
My carrier is CNA and they have an excellent small firms policy that I think is affordable and locks in your premium for three years at a time.
I've had them for about 30 years and have been very satisfied but I've been lucky not to have been sued.
They also offer lots of ancilliary services that come in handy from time to time and may keep you out of trouble.
LLC's don't protect professionals.
I've had attorneys as clients and they've been great.
It's more a case of the personal traits of a client that can cause trouble and the only way to discover that is by careful interviewing and research and that's still not guaranteed. People can change.
Do the best job you can, regardless of the fee.
Remember that if it turns ugly, you'll be compared to the "standard of the industry" which is pretty high in our profession, even for small firms or sole proprietors.
Clients think we're perfect, that we do perfect drawings, that contractors can understand perfectly and can be built perfectly.
They also think that we've done their project or building thousands of times before, they're all the same, so why isn't this easy, therefore it should be cheap and fast?
Lastly, get tough with the client, stand up for yourself and don't apologize if you didn't make a mistake.
Call their bluff and if they press it, bankruptcy isn't the stigma it used to be and may be the answer.
Good luck!
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Larry Paul AIA
L. A. Paul & Associates
San Francisco CA
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