Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a live broadcaster.
This article will discuss the primary insurance coverage for live streamers, general liability insurance, as well as additional policies that are appropriate for this industry.
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Live Streamers 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 LIVE STREAMER
Example 1: As you prepare to host a collaboration with another streamer, your visitor falls over a dangling extension cable while bringing equipment into your studio. Your visitor fractures a wrist as a consequence of the fall, as well as their valuable equipment. If the visitor decides to sue, general liability insurance will cover their medical expenses and equipment damages.
Example 2: You provide a tour of your studio to numerous admirers who won a promotional contest. During the tour, one fan breaks away from the group to inspect your cameras. As the fan reaches for a heavy camera on a high shelf, they slip and fall, landing on their head. If the fan chooses to sue you for damages, your general liability insurance will cover your legal fees as well as any settlement payments.
Example 3: A delivery driver backs into the loading area and accidently knocks a security gate while delivering sound equipment to your studio. The collision tears off the back bumper of the delivery vehicle and smashes the back door. General liability insurance would cover any car repairs and legal fees incurred as a result of the event.
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, live streamers 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 Live Streamers
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 live broadcasters should have are as follows:
Insurance for Commercial Property
You’ve spent a lot of money on video equipment, gaming consoles, lighting systems, networking components, and other streaming technologies. If your studio is damaged by a fire or natural calamity, repairing this specialist equipment would be prohibitively expensive. In the case of an accident, commercial property insurance covers your equipment and other company property.
Insurance for Business Interruption
It’s not always simple to transfer your equipment and shoot somewhere if a fire, burglary, or other disaster compels you to temporarily shut your studio for repairs. Your financial losses would be covered by business interruption insurance until you could reopen your studio.
Coverage Options for Some Live Streamers
In addition to the principles stated above, your live streamer may need other sorts 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.
Commercial Umbrella Insurance
Even the most conscientious company owners may be faced with a lawsuit that threatens to exceed the limitations of their basic insurance policy. 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 Data Breach
Your company is exposed to cyber threats since it operates in today’s internet environment. Consider data breach insurance to secure both your personal and commercial information, whether you’re dealing with an unhappy fan or someone attempting to usurp you on the top streaming platforms.
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.