What to Do if a Client Makes a Claim Against You

Introduction

A claim from a client can feel personal, stressful, and urgent—especially if it questions your competence, delays payment, or threatens your reputation. But the way you respond in the first 24–72 hours often has a bigger impact than the claim itself.

Whether the allegation is about poor advice, missed deadlines, defective work, a breach of contract, or financial loss, your goal is simple: protect your legal position, preserve evidence, and give your insurer (if you have cover) the best possible chance to defend you.

This guide explains what to do if a client makes a claim against you, with practical steps and common pitfalls to avoid.

1) Stay calm and don’t admit liability

Your first instinct might be to apologise or “make it right” immediately. A professional, empathetic response is fine—but avoid language that could be interpreted as an admission of fault.

Avoid statements like:

• “This is our mistake.”

• “We’ll cover your losses.”

• “We should have done better.”

You can acknowledge the client’s concerns without accepting blame:

• “Thank you for raising this. We take it seriously and will investigate.”

• “We’re reviewing the facts and will respond in writing.”

Why this matters: admissions can weaken your defence and may prejudice insurance cover if you later need to claim.

2) Clarify what the client is actually alleging

Not every complaint is a legal claim. Clients often use “claim” loosely.

Ask (politely) for:

• A written summary of what went wrong (from their perspective)

• The outcome they want (refund, rectification, compensation, cancellation)

• Any deadlines they’re imposing

• Any evidence they’re relying on

If the client has sent a solicitor’s letter, a “letter of claim”, or a formal complaint referencing negligence/breach of contract, treat it as serious and time-sensitive.

3) Preserve evidence immediately (and stop the “clean-up”)

As soon as you suspect a claim, preserve all relevant evidence. Do not delete emails, messages, call recordings, files, or project notes.

Create a secure case folder and save:

• Contracts, proposals, scopes of work, and terms & conditions

• Emails and message threads (including WhatsApp/Teams/Slack where relevant)

• Meeting notes, call logs, and change requests

• Invoices, payment records, and credit notes

• Deliverables, drafts, versions, and timestamps

• Photos, site records, inspection reports, and sign-offs

Important: Don’t “tidy up” documents or rewrite notes after the fact. If you need to add context, create a separate dated note explaining what you remember.

4) Check your contract, scope, and terms & conditions

Many claims are really scope disputes.

Review:

• What you agreed to deliver (and what you didn’t)

• Acceptance criteria and sign-off stages

• Change control process (and whether it was followed)

• Limitation of liability clauses

• Exclusions and assumptions

• Timeframes, dependencies, and client responsibilities

• Complaints procedure and dispute resolution clauses

If you don’t have written terms, you’re not alone—but it does make disputes harder. In that case, gather evidence of what was agreed (emails, quotes, meeting notes, messages).

5) Notify your insurer early (especially for Professional Indemnity)

If you have Professional Indemnity (PI) insurance, notify your insurer as soon as you become aware of a potential claim—even if you think it’s “probably nothing”. Many PI policies operate on a claims-made basis, meaning the timing of notification matters.

You should notify if you receive:

• A solicitor’s letter or letter of claim

• A demand for compensation

• A threat of legal action

• A formal complaint alleging negligence

• Any situation where you reasonably expect a claim

Do not:

• Agree settlements without insurer consent

• Refund/rectify in a way that admits liability

• Instruct solicitors without checking policy conditions

Early notification allows insurers to:

• Appoint specialist solicitors

• Guide your communications

• Preserve your defence strategy

• Potentially resolve the issue quickly

6) Respond professionally, in writing, and on your timeline

A rushed response can create contradictions. A hostile response can escalate the dispute.

A good approach:

1. Acknowledge receipt and confirm you’re investigating

2. Ask for any missing information

3. Confirm when you will respond substantively

Example acknowledgement (adapt as needed):

• “Thank you for your email dated [date]. We take your concerns seriously and are reviewing the matter. Please provide any documents you rely on, including [X]. We will respond by [date].”

Keep your tone factual and calm. Assume every message may later be read by a solicitor, judge, or insurer.

7) Build a clear timeline of events

Create a timeline while facts are fresh:

• When the project started

• Key milestones and approvals

• Changes requested and agreed

• Issues raised (by either side) and how they were handled

• Any delays and causes (including client-side delays)

• Final handover/sign-off

This timeline becomes the backbone of your defence and helps your insurer or solicitor assess exposure.

8) Identify the type of claim and the likely legal route

Common claim types include:

• Breach of contract: alleging you didn’t deliver what was agreed

• Negligence/professional negligence: alleging your advice/work fell below reasonable standards

• Misrepresentation: alleging they relied on incorrect statements

• Breach of statutory duty: more common in regulated or safety-critical work

• Data protection/GDPR issues: where personal data is involved

Understanding the claim type helps you decide who should handle it (insurer, solicitor, internal complaint process) and what evidence matters most.

9) Consider whether a quick fix is possible—without harming your position

Sometimes the fastest, cheapest solution is to correct the issue. But be careful:

• Rectification can be sensible if it’s clearly within scope and doesn’t imply fault.

• Refunds can be appropriate where there’s a service failure, but document it as a commercial resolution rather than an admission.

• Goodwill gestures should be agreed with your insurer if a PI claim is possible.

If the client is demanding compensation for consequential losses (lost profits, missed opportunities), those claims can become complex quickly—get advice.

10) Don’t argue on the phone (and document every call)

Phone calls can be useful for de-escalation, but they’re risky if emotions run high.

If you do speak:

• Keep it short and structured

• Don’t speculate

• Don’t admit liability

• Follow up with an email summary: “As discussed, our understanding is…”

If the client records calls (or you do), ensure you comply with UK privacy rules and your internal policies.

11) Escalate internally and control communications

If you have a team, decide who is authorised to communicate with the client. Mixed messages are a common cause of trouble.

Internally:

• Brief relevant staff on “need-to-know” basis

• Preserve evidence (no deletions)

• Stop informal messaging with the client

• Route all requests through a single point of contact

If the claim could become public (reviews, social media, industry forums), prepare a calm, compliant response plan.

12) Get legal advice if needed (and coordinate with insurers)

If the claim is significant, complex, or formal, legal advice is often essential.

Typical triggers:

• A solicitor’s letter or pre-action protocol letter

• High-value losses alleged

• Allegations of dishonesty, fraud, or regulatory breaches

• Multiple parties involved (subcontractors, suppliers)

• Threats to report you to a regulator or professional body

If you have PI insurance, your insurer may appoint solicitors. Coordinate to avoid duplicated costs and conflicting strategies.

13) Understand the pre-action process (UK overview)

Many civil disputes follow a pre-action stage before court proceedings. While details vary, it commonly involves:

• A formal letter of claim

• A period to respond

• Exchange of key documents

• Attempts to settle or mediate

You don’t have to accept unreasonable deadlines, but you should not ignore formal correspondence.

14) Consider alternative dispute resolution (ADR)

Court is expensive and slow. ADR can resolve disputes faster.

Options include:

• Without prejudice negotiations

• Mediation

• Expert determination (common in technical disputes)

• Ombudsman schemes (sector dependent)

Even if you believe you’re right, ADR can be commercially sensible if it reduces cost, distraction, and reputational risk.

15) Review your insurance cover and risk controls

A claim is also a signal to tighten processes.

Insurance to review:

• Professional Indemnity (advice, design, services, errors/omissions)

• Public Liability (injury/property damage to third parties)

• Employers’ Liability (employee injury/illness)

• Cyber insurance (data breaches, ransomware, business interruption)

• Legal expenses (dispute support)

Risk controls to strengthen:

• Clear scopes and written change control

• Better documentation and sign-offs

• Stronger client onboarding and expectation-setting

• Quality assurance checklists

• Staff training and supervision

16) Learn from the incident without blaming your team

After the immediate risk is controlled, run a simple post-incident review:

• What triggered the dispute?

• Where did communication break down?

• Were there warning signs?

• What process change would prevent a repeat?

Keep the focus on systems and prevention, not blame.

Frequently Asked Questions

Is a complaint the same as a claim?

Not always. A complaint may be about service or dissatisfaction. A claim usually alleges loss and seeks compensation. But complaints can become claims—treat serious complaints carefully.

When should I notify my Professional Indemnity insurer?

As soon as you become aware of circumstances that may give rise to a claim—especially if there’s a written demand, threat of legal action, or allegation of negligence.

Should I refund the client to make it go away?

Sometimes a commercial resolution is sensible, but refunds can be treated as admissions. If PI insurance may apply, speak to your broker/insurer first.

What if the client threatens to leave a bad review?

Stay calm and professional. Don’t argue publicly. Offer to handle the matter privately and document all communications. If the review is defamatory or false, get legal advice.

What if I used subcontractors?

You may still be responsible to the client under your contract. Preserve subcontractor communications and contracts, and notify your insurer if a claim is likely.

Can I ignore a solicitor’s letter?

No. Ignoring formal correspondence can escalate matters and harm your defence. Acknowledge it and seek advice.

How long do claims take to resolve?

It varies. Some resolve in days with a practical fix; others take months (or longer) if formal legal processes are involved.

Conclusion

A client claim doesn’t automatically mean you’ve done something wrong—but it does require a calm, structured response. Preserve evidence, avoid admissions, review your contract, and notify your insurer early if Professional Indemnity could apply. With the right steps, many disputes can be resolved quickly and commercially—without damaging your business.

If you’d like, tell me your industry (e.g., consultants, contractors, IT, design & build) and the most common claim scenario you see, and I’ll tailor this into a niche-specific version with examples and a tighter SEO keyword focus.