Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a graphic design studio.
This article will discuss the primary insurance coverage for graphic design studios, general liability insurance, as well as additional policies that are appropriate for this industry.
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Graphic Design Studio 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A GRAPHIC DESIGN STUDIO
Example 1: Your graphic design firm just got a massive piece of printing equipment that has no outlet. You decide to use an extension cable to power the machine while you wait for the electrician to install a new outlet. As a consequence, a studio visitor or customer falls over the extension cable and needs medical treatment. Any medical bills and/or litigation resulting from the trip and fall accident may be covered by your general liability insurance policy.
Example 2: You mistakenly run an ad that misrepresents your graphic design skills while attempting to promote your firm. A customer approaches you because they want the advertised service, and when you explain that the advertisement was incorrect, they decide to sue you for false advertising. Your insurance coverage may pay some of the expenses involved with the false advertising case.
Example 3: As your customer walks up your entry steps, the railing breaks, sending her plummeting to the ground. This causes several scrapes and necessitates the need of emergency medical services. Your general liability insurance coverage may cover the expenses of emergency transportation and injury treatment.
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
Graphic design studios in the United States typically pay 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 Graphic Design Firms Require
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every graphic design firms should have are as follows:
Insurance for Commercial Property
If your graphic design studio is in a business facility with a physical address, you’ll need commercial property insurance to safeguard your building, property, and equipment from certain insured losses.
Umbrella Insurance for Businesses
If you anticipate substantial claims or litigation, you should think about acquiring a business umbrella insurance coverage. These plans cover claims that exceed the limits of your standard general liability insurance coverage.
Insurance for Professional Liability
Professional liability insurance protects you against claims arising from mistakes, omissions, or acts of carelessness in your job.
Coverage Options for Some Graphic Design Firms
In addition to the policies listed above, your graphic design studio may need other forms of coverage based on particular parts 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 Workers’ Compensation
If you have graphic designers or other workers at your place of business, you’ll need Workers’ Compensation Insurance to cover the expenses of any on-the-job accidents.
Insurance for Cyber Liability
Cyber liability insurance protects you if an unauthorised individual breaches your databases and takes information about your customers, company, and/or workers.
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.