How to define your cancellation policy
A clear cancellation policy protects your income, manages client expectations, and prevents awkward conversations down the line.
To protect your time and income, you must create a written cancellation policy that is shared with all clients before they book. Your policy should clearly state the minimum notice period required to cancel or change a session (e.g., 48 hours) and the fee that will be charged for late cancellations (e.g., 100% of the session fee). Being upfront with these terms from the start creates a professional boundary and ensures everyone understands the rules.
Why a cancellation policy is essential
It might feel a bit formal at first, but a clear policy is one of the best things you can do for your new business. It ensures you get paid for the time you’ve set aside, even if a client cancels at the last minute. It also reduces no-shows, as clients are more likely to commit to a session when there is a clear financial consequence for not attending.
A good policy shows that you are a professional who values your time and expertise. It sets clear expectations and prevents the awkwardness of having to chase payment or debate fees after a late cancellation.
Key decisions for your policy
Your cancellation policy needs to be fair but firm. Here are the main points you need to decide on:
- The Notice Period: This is the most important part. How much advance warning must a client give you to cancel or reschedule without charge? A 24-hour period is the absolute minimum, but a 48-hour notice period is very common and gives you a much better chance of filling the empty slot.
- The Late Cancellation Fee: What happens if a client cancels within the notice period? Most businesses charge the full session fee. Some may charge 50%, but charging 100% is standard practice as it is unlikely you will be able to fill that slot at short notice.
- Exceptional Circumstances: You may want to consider if you will waive the fee for genuine emergencies. If you do, it’s wise to keep this as an informal, discretionary gesture rather than writing it into your policy, which helps prevent it from being taken advantage of.
- How to Cancel: Specify how clients must inform you. For example, "Cancellations must be made by email or via the online booking system." This prevents issues arising from a "missed" text message or voicemail.
What if you have to cancel?
Fairness works both ways. Your policy should also briefly state what happens if you are unwell or have an emergency and need to cancel a session. This builds trust and shows respect for your clients' time.
Best Practice: If you have to cancel a session, always give the client as much notice as possible and offer them a choice: a full refund for that session or the option to reschedule to another time that works for them. This maintains a positive relationship.
Communicating your policy
Once you’ve defined your policy, make sure it’s clearly visible. The best places to include it are:
- In your main Terms and Conditions document.
- On the booking page of your website.
- In the confirmation email that clients receive after booking.
By making your cancellation policy clear and easy to find, you ensure there are no surprises. It becomes a simple, professional part of how you do business.
Created by hatch. • Updated on April 9, 2026