>>>>>yes, I work through my limited liability company.
>>>>
>>>>Then your exposure is limited to the assets held by the LLC.
>>>>That said, I would not agree to anything that allowed the client to recover more than the fees paid, for whatever reason.
>>>>
>>>I'd limit the years they can recover.
>>
>>Thanks, can you go into a bit more detail so I can understand better what you mean, please?
>
>Jos mentioned Milestones: tested and afterwards accepted. In theory great, but needs a certain infrastructure and knowledge at your customer - and will incrue (well spent) costs there testing and accepting milestones. If your customer wants to avoid such costs, either define hard cutoff like
>only amounts earned in last 18 (24, 36) months received can be "asked" back if an error in sources stemming from that time is discovered.
>or
>Agree upon decreasing percentage for "older" bugs not found by testing effort agreed to be handled by customer in first years .
>Hard cutoffs IMO opinion not best - I'd go for decrease in percentage for errors "invented" longer time ago:
> 80% of amount billed for errors added in last 6 months
> 60% of amount billed for errors added 7-12 monhs ago
> 40% of amount billed for errors added 13-24 monhs ago
> 25% of amount billed for errors added 25-36 monhs ago
>to motivate early and earnest testing, as any errors found in testing too late will cost your customer money via percentage. Benefit for you is that risc of undetected hidden errors creating huge side effects is minimzed by such a agreement: both sides win if bug is nailed early before it creates havoc via side effects.
>
>And always mention up front that your calculated rate in the long run needs to rise to reflect added cost made necessary due to insurance ;-)

Thanks for the clarification