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Company insurance is intended to safeguard the financial assets of a business owner and is an important investment for an illustration business.

Company insurance is intended to safeguard the financial assets of a business owner and is an important investment for an illustration business.

This article will discuss the primary insurance coverage for illustration firms, general liability insurance, as well as additional products that are appropriate for this industry.

Illustration Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: You get notification that one of your finished projects is a near match to the work of another artist, who is suing you for copyright infringement. General liability insurance should cover your legal bills as well as the claimant’s damages.

Example 2: You spill coffee on a client’s pricey equipment during a meeting. They have requested that your company reimburse the cost of replacing the item as well as the cost of lost revenue while their systems were down. These charges, as well as the costs of legal counsel, should be covered by your general liability coverage.

Example 3: You’ve applied to attend an art conference. They want proof of liability insurance. This requirement should be met with the aid of general liability insurance.

Example 4: To help your firm grow, you’ve asked for a loan to buy new technology and software. As part of the loan conditions, the bank demands a $1 million liability coverage. These terms will be covered by a general liability coverage.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

In America, graphic firms pay between $300 and $600 every year for general liability coverage of $1 million.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Illustration Required by Businesses

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all illustration firms should have are as follows:

Insurance for Commercial Property

Your assets are safeguarded with commercial property insurance. This will cover the expense of replacing, rebuilding, or repairing owned commercial property that has been damaged in a designated loss. Because this policy has specified limitations, company owners who lease should evaluate their lease conditions and engage with an insurance specialist to determine any potential desirable endorsements.

Commercial property insurance may be purchased as part of a company owner’s coverage (BOP).

Insurance for Workers’ Compensation

Workers compensation insurance is essential for all workers in every firm. If a person is injured while doing business-related tasks, the insurance will reimburse a part of their earnings while they are out of work. It will also cover any medical expenditures incurred as a result of the occurrence. A workers compensation coverage also provides the company owner with appropriate legal protection in the event of serious injuries that result in litigation.

Workers’ compensation is often bought as a separate insurance.

Coverage Options for Some Illustration Businesses

In addition to the insurance listed above, your illustration company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Business Interruption

If your company is forced to close due to a covered loss, the financial consequences might be disastrous. Business interruption insurance compensates for lost revenue and fixed expenditures during this period. Some carriers also provide additional expenditure coverage, which may help you set up in a temporary location while you get your company back up and running.

This insurance, also known as business income insurance, may be included as part of a business owners’ policy (BOP) package.

Insurance for Data Breach

If your company relies on technology, you should think about getting data breach insurance. This policy, often known as cyber attack insurance, covers a liability loss caused by a cyber attack, which is not covered by a general liability policy.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.