A liability cap limits your firm’s financial responsibility if there’s a claim. Including this in your engagement letters protects your firm and clarifies client expectations.
OverSuite sets a default liability cap for you, but you can override it at any time.
Default liability cap in OverSuite
The system sets the default cap to 100% of the engagement fee
This value appears in the Terms and Conditions of all engagement letters
You can override the default globally or for individual proposals
Step 1 - Override the default cap
Go to Configure and select Engagement Letters.
Select the Liability Caps tab.
Toggle on the option to override the standard cap.
Choose a new default:
Multiply the engagement fee by a set number, or
Enter a custom value.
Click Save Settings.
Step 2 - Override the cap for a specific proposal
When creating a proposal, go to the Complete Proposal section.
Enter a custom value or multiplier for the liability cap.
Confirm your decision.
Review the updated liability cap in the Preview Letter of Engagement before sending.
FAQs
Is this approach compliant with my professional body?
Yes. Professional bodies require minimum Professional Indemnity (PI) insurance but don’t specify liability cap amounts.
PI insurance details must be available to clients on request. OverSuite includes this in your terms and conditions
Liability caps are separate from PI insurance. Experts recommend setting a cap that reflects the engagement risk, often equal to the engagement fee
Why have you changed your approach?
We simplified the process to remove barriers and save time. The default cap assumes the engagement fee reflects the risk, but you can override it for higher-risk work.
Important notes
Review your governing body’s guidance
Set a fair and reasonable cap based on engagement risk
Use overrides for high-risk assignments
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