Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a drone photography business.
This article will discuss the primary insurance coverage for drone photography enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.
Drone Photography 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A DRONE PHOTOGRAPHY BUSINESS
Example 1: You’re photographing a wedding reception with your drone when you lose control of it. The drone collides with the bride, seriously injuring her. She sues your company. Your general liability insurance coverage will cover the expense of your legal defence, including any out-of-court settlement if required.
Example 2: A prospective customer comes to your location to view your drones when he stumbles over a power cord and collapses. He fractures his wrist and needs medical attention. He requests that you pay for his medical care. This is most likely covered by your general liability insurance coverage.
Example 3: You’ve been employing a new logo for your company that you believe accurately portrays it. Unfortunately, another firm determines your logo is too similar to theirs and sues your company. In such a case, the general liability insurance coverage you hold will pay for your legal defence as well as the expense of any settlement.
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
Drone photography firms in America 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 Required by Drone Photography Businesses
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 drone photography firms should have are as follows:
Insurance for Professional Liability
A professional liability insurance coverage protects your company against liability claims resulting from errors or failure to perform. There is always the potential that a customer would sue your company claiming that your work caused him or her damage. If this occurs, your professional liability insurance will cover your legal bills.
Insurance for Commercial Property
You’ve spent a lot of money on drones, photographic equipment, and editing software. It would be expensive to replace if you lost most or all of this property due to an unanticipated tragedy, such as a fire. However, if you have a business property insurance coverage, you may be able to seek assistance with replacement expenses if your loss was caused by a covered occurrence.
Coverage Options for Some Drone Photography Businesses
In addition to the insurance listed above, your drone photography company may need other forms of coverage based on particular elements of your operations. 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 employ people, your state will almost certainly require you to obtain workers’ compensation insurance. A workers’ compensation coverage protects your employees in the event they are injured while performing job-related responsibilities. If they are injured and need medical treatment, the workers’ compensation coverage will cover the costs. It will also assist to compensate for missed income while they heal from their ailments.
Insurance for Commercial Vehicles
If you use a car mainly for work, you need a commercial vehicle coverage to guarantee that you fulfil your state’s auto insurance requirements. If you are in an accident, your insurance will assist to pay for damage to your car and other vehicles, as well as medical treatment for the wounded.
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.