Company insurance is intended to safeguard the financial assets of a firm owner and is a crucial investment for a copywriting business.
This article will discuss the primary insurance coverage for copywriting firms, general liability insurance, as well as additional products that are appropriate for this industry.
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Copywriting 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.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A COPYWRITING COMPANY
One of your copywriters is accused of plagiarism by a customer. General liability insurance would cover the legal expenses associated with fighting or settling the lawsuit and restoring your company’s image.
Example 2: A content marketing firm in another state sues you for loss of revenue due to consumer confusion since your company name is similar to the name of that agency. Your legal fees would be covered by general liability insurance.
Example 3: A customer visits your business and stumbles over a computer cable that was not securely secured behind a workstation. General liability insurance would cover the client’s medical expenditures as a consequence of their accident.
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, the typical copywriting firm spends $300-600 per year for $1 million in general liability coverage.
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 Copywriting Companies Require
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that all copywriting firms should have are listed below.
Insurance for Commercial Property
Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, burglary, or natural catastrophe if you own the building in which you operate. This covers the cost of repairing or replacing any structural damage to your building or grounds, as well as the cost of repairing or replacing any business equipment stored there.
Insurance for Workers’ Compensation
Most states require employers to carry workers’ compensation insurance for both part-time and full-time employees, including those who work remotely. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Professional Liability
Copywriting firms may advise customers on how to format their material so that it is more consistent with their brand. Because customers may see this as professional advise, you will need professional liability insurance to protect your company and pay your legal expenses if a client believes your advice injured them.
Insurance for Commercial Vehicles
Any car that you or your employees use mainly for business purposes, such as visiting customers, necessitates commercial auto insurance to cover the vehicle, driver, and other drivers on the road in the case of an accident. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business-related equipment you transport in your cars.
Coverage Options for Some Copywriting Businesses
In addition to the insurance listed above, your copywriting 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.
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.
Insurance for Home-Based Businesses
If you operate any portion of your company from home, you may need this insurance to protect your commercial equipment and home office space. If you do not declare that you use your house for commercial reasons, a normal homeowners insurance policy may only cover specific expenditures.
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.