When getting started as a freelancer, you may be caught up in the excitement of all the new jobs you're getting, but it's always important to think about the rights and responsibilities of both you as the writer as well as your new clients.

A freelance contract not only benefits your reputation and safety, but the clients as well. Since it is a legally binding document, it can keep you safe in the case of potential legal disputes. The process of creating a contract sounds a bit scary, but there are many reasons why you should do so.

1. Contracts Explain Details of Job Expectations

When starting a new project, this part of the freelance contract simply notes what both parties need to be doing, and this can be referred back to during the working period. This helps to prevent a mountain of misunderstandings in terms of what tasks you're getting paid to do and allows you to be aware of what work you're qualified to take on.

For example, you as a writer may be in charge of researching, creating email campaigns, editing documents, or planning social media content, and this must be listed in the job expectations section of a contract. This is also important, so the client doesn't put you in a position to do work you're over-qualified to do as well. Furthermore, if a client needs you to do one or two revisions, you want to be aware of that as well. Unsure where to begin? Have a look at some of the best apps for creating great contract proposals.

2. Contracts Note the Terms of Payment

Without noting down the terms of payment and keeping a record of it, this can be a risk to you as a freelance writer. After completing a series of projects, for example, you want to ensure the proposed amount won't be changed due to a client changing their mind.

Will you decide on a fixed price? Is there an hourly rate, or do you prefer to be paid after individual tasks? Will you be paid every 7, 14, or 30 days? Will there be a deposit put down before you get to work, or late fees if a client doesn't pay? You may decide on a direct deposit to your bank account, but if you're more comfortable with invoices, you'll need an invoicing system. Here are the best free invoice apps for freelancers and small business owners.

In piecing these payment details together, both you and your client can agree to a payment or a series of payments, including the delivery time if it's a one-off project and a deadline date. This means there won't be any confusion once a project has been completed. Clients won't be able to negotiate a lower price, so you won't be underpaid. It works out for both parties.

3. Confidentiality Agreements

You may be working with a client who doesn't want certain information known by the public, and this is covered in a confidentiality agreement. The client might show you some of their business finances, business strategies, or other important information. A business may want to market a legal product in one country but not in another. Keep things private between both of you!

This agreement can also be separate from your freelance writing agreement, such as a non-disclosure agreement. If you're being shown private information, you don't want this to leak to their competitors and give them an advantage. If you'd like to learn more about these agreements for entrepreneurs and companies, check out the U.S. Securities and Exchange Commission.

Copyright law in the world of freelancing can be a confusing slope, but putting copyright information into your freelance contract will keep things clearer for you and your client. When working on a project the rights originally belong to the writer, however, this changes once it is sent to the client. The rights of the work can then be transferred over.

Once you have written the work required, the client possibly may want the right to make minor edits if necessary, so this can be agreed upon in the right to ownership section. If you'd like to learn more about Copyright Law, have a look at the fine details on the U.S. Copyright Office website. So, if you want to add website copywriting or articles to your portfolio, for example, you'll want to ask permission first!

5. Freelancing Insurance

In your freelance contract, you may want to add terms of the insurance. When writing a project for a client, as a freelance writer, you're going to want insurance if something goes south. This way, your client knows that you take risks seriously, and you have a backup plan if there are any damages.

According to a business insurance company Get Dinghy, if a client tries to make a claim against you, there's a chance you'll need to go to court, hence racking up legal fees. Perhaps the client has had financial issues and cannot pay you, so writing down your insurance terms in your agreement can include stating your legal team and what they do, as well as noting down the compensation and fees you can have covered.

You might also want to note down your general property insurance, which covers any damaged technology. It's also highly recommended to have an electronic signature of both you and your client when agreeing to your rights. Clients will know you're prepared, and if you're up for paying a lot of money, you'll be covered.

A Freelance Contract Is Important

Without these agreements put into place, there can be issues with payment, no way of enforcing an agreement if the client decides to go against the contract, problems with legal issues and liabilities, and a lot more.

The legal document will potentially save you from a heated court battle and a long list of risks, so this is highly recommended as a layer of protection. Being a freelancer is a fulfilling journey, and even though you're free to not use a contract, it's never a bad idea to be prepared.