Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a modelling agency.
This article will discuss the primary insurance coverage for modelling firms, general liability insurance, as well as additional policies that are appropriate for this industry.
Table of Contents
Modeling 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 MODELING AGENCY MAY HAVE GENERAL LIABILITY INSURANCE
Example 1: A freelance photographer trips on a set during a photoshoot and injures himself. He sues for damages to pay his medical expenditures as well as pain and suffering since his injuries prevent him from working for many months. General liability insurance would cover your legal fees as well as any monetary damages awarded by a court.
Example 2: At a modelling agency function, one of your models knocks over a vase worth $7,000. The venue files a lawsuit, requesting a new vase. The vase’s replacement cost would be covered by your general liability policy.
Example 3: Your designer inadvertently uses a copyrighted photo as part of your website redesign, and the photo’s owner sues for copyright infringement. Your legal fees and the resulting payout would be covered by general liability insurance.
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
Modeling agencies in the United States typically 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 Modeling Agencies Required
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all modelling agencies should have are as follows:
Insurance for Contents and Equipment
If your agency does not own the warehouse where it works but stores commercial property there, content and equipment insurance covers such goods in the case of a fire, burglary, or natural catastrophe.
If your company does both on-site and off-site photo shoots, be sure to check policy restrictions with your insurance provider since you may require portable equipment insurance while working off-site.
Content and equipment insurance are often available as part of a company owner’s coverage (BOP).
Insurance for Professional Liability
Your profession demands you to be innovative and take chances, yet these ideas might not always pan out. If a customer thinks that your work caused them damage, they may hold you accountable. Professional liability insurance protects you if you are sued as a result of your professional advise or services.
Insurance for Workers’ Compensation
As a modelling agency, you have a team of professionals whose health and well-being are important to the success of the company. State law requires you to acquire workers’ compensation coverage for both your part-time and full-time employees to assure coverage for on-the-job injuries and illnesses.
While your state may provide exclusions for company owners, if you are involved in the day-to-day operations of the firm, you should consider include yourself in your workers’ compensation coverage.
Workers’ compensation insurance is often available as a stand-alone policy.
Coverage Options for Some Modeling Agencies
In addition to the policies listed above, your modelling agency may demand 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 Business Interruption
If a fire or other severe incident causes you to shut for an extended period of time, business interruption insurance may assist pay for a temporary site as well as cover your expenses and financial losses until you can reopen.
Business interruption insurance is typically available as part of a business owner policy (BOP).
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.