Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a fashion photographer.
This article will discuss the primary insurance coverage for fashion photographers, general liability insurance, as well as additional plans that are appropriate for this industry.
Fashion 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 A FASHION PHOTOGRAPHER’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: A visitor stumbles on the stairs of your showroom’s staircase, fractures his leg, and asks that your company pay for his medical care. His medical expenses, including ambulance transportation to the emergency room, would be covered by general liability insurance.
Example 2: While transporting some of your pricey equipment to a corporate vehicle, an employee loses control of the handcart and collides with a client’s luxury automobile. Your customer chooses to file a lawsuit against your company. Your legal defence, the client’s car repair expenses, and any needed payout would all be covered by general liability insurance.
Example 3: A rival feels your logo is too similar to his firm’s logo and threatens legal action against your company. In the case of a lawsuit, general liability insurance would cover your legal bills as well as any monetary damages awarded by the court.
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 the United States, fashion photographers pay between $350 and $750 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 Coverage Needed by Fashion Photographers
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 fashion photographers should have are as follows:
Insurance for Commercial Property
You made a significant investment in the camera equipment and office supplies required to launch your firm. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to your facility as well as damage to the equipment and supplies stored within.
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. 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.
Coverage Options for Some Fashion Photographers
In addition to the regulations listed above, your fashion photographer may demand other forms of coverage based on particular parts of your business. 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
In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. 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 documents you transport in your vehicle.
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.