Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a literary agency.
This article will discuss the primary insurance coverage for literary agencies, general liability insurance, as well as additional policies that are appropriate for this industry.
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Literary Agencies 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 A LITERARY AGENCY MAY HAVE GENERAL LIABILITY INSURANCE
Example 1: You hold a lavish Christmas party to attract new customers. Several individuals slip and fall in the venue’s parking lot due to the icy weather. They are both requesting payment for medical bills from you and the venue owner. Your general liability insurance should cover some of these expenses.
Example 2: As part of the leasing agreement for your new office facility, you must provide proof of liability insurance in the amount of at least $2 million. Your general liability coverage should assist you in meeting that responsibility.
In a recent interview, you were scathing of another literary agency. If they launch a slander lawsuit against you, your general liability coverage should pay your legal expenses and court-awarded damages.
Example 4: Your new advertising brochures include a picture that is protected by copyright law, and the owner sues you. General liability insurance helps guarantee that you have enough legal counsel.
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
Literary agencies in the United States often pay $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 Required by Literary Agencies
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 literary agencies should have are as follows:
Insurance for Professional Liability
Clients rely on your knowledge and recommendations. If they believe your services have damaged them, they may sue you for carelessness or a mistake in professional services. Legal counsel and court-awarded damages would be covered by professional liability insurance, regardless of validity.
This insurance, often known as Errors and Omissions insurance, may be purchased as part of a company owner’s policy (BOP).
Insurance for Workers’ Compensation
Employees are required by law to have workers compensation coverage. If a team member gets injured on the job, this coverage will pay their medical expenditures as well as a percentage of their missed income. If the injured employee chooses to suit for further damages, the insurance company will pay your legal bills.
Workers compensation insurance may be purchased separately.
Coverage Options Available to Literary Agencies
In addition to the insurance listed above, your literary agency 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 Commercial Property
Consider purchasing a business property insurance coverage to safeguard your professional assets. If a covered loss occurs, this insurance covers the premises and/or contents of a company.
Commercial property insurance may be purchased as part of a company owner’s coverage (BOP).
Insurance for Data Breach
As a literary agent, your company holds sensitive material that is not yet available to the public. If a customer suffers a loss as a result of a security breach in your computer system, they may hold you accountable. While a general liability insurance excludes this kind of coverage, it is available for an extra fee.
This is sometimes referred to as cyber attack insurance.
Insurance Against Crime
While you may know and trust your employees, every organisation is a target for dishonest individuals. A normal company owner’s insurance does not cover employee dishonesty, fraud, or forgery. Crime insurance offers coverage in the event of losses like the ones mentioned above, lowering the possibility of a coverage gap.
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 business is an LLC, look into LLC Insurance.