Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a commercial photographer.
This article will discuss the primary insurance coverage for commercial photographers, general liability insurance, as well as additional products that are appropriate for this industry.
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Commercial Photographers 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.
Common Situations That Commercial Photographers’ General Liability Insurance May Cover
Example 1: A customer comes to your studio to talk about wedding photography and falls over an exposed wire, breaking her wrist. She requests that your company pay for her medical treatment. Her medical bills would be covered by general liability insurance.
Example 2: A rival claims you slandered them in your most recent marketing effort. While you’re not sure what they consider libel, you know you need to get a lawyer as quickly as possible. Your legal bills would be covered by general liability insurance.
Example 3: You depart to have lunch after putting up your equipment inside a client’s building. When you return, you find a fire, which the customer blames on your equipment. If a court rules that you are liable for the fire, your general liability insurance will cover the repair expenses since your coverage covers damage to client property.
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
The typical commercial photographer in the United States pays between $300 and $600 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
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 Required by Commercial Photographers
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 commercial photographers should have are as follows:
Insurance for Commercial Property
You’ve spent a lot of money on photographic equipment and materials to get your company started. If you own the building where you do business, you are liable for any business-related property that is held there in the case of a fire, burglary, or natural catastrophe. And you can’t work without the right tools. After an accident, commercial property insurance would cover the expense of repairing or replacing your photographic equipment and supplies, allowing you to recover swiftly.
Insurance for Professional Liability
While you try hard to prevent errors, there is always the possibility that one of your customers would claim that your photographic services caused them harm or injury. Professional liability insurance covers your legal bills if you are sued and protects you and your staff in the case of an on-the-job mishap.
Coverage Options for Commercial Photographers
In addition to the insurance listed above, your commercial photography firm 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 Commercial Vehicles
Any car used mainly for business by you or your workers needs commercial auto insurance to safeguard the vehicle, driver, and others on the road in the case of an accident. Choose a policy that covers not just accident-related vehicle repair expenses and medical care for anybody harmed, but also enough coverage for any particular equipment you have in your cars.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
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.