How Graphic Designers Can Build The Perfect Insurance Plan
With the advancement of technology in the Ontario area, graphic designs are taken to all new heights. Using visual communication devices these artists can create a wide range of images visual graphics. Graphic designing can also be a unique and diverse field with a wide range of opportunities. These artists are often times used by commercial art studios, movie directors, architects, they are used as consultants, and they even design corporate logos. It really takes an artist’s flair and a tech-savvy mind to get into the industry and it can be very rewarding to those who have a knack for it. That being said, everything in the industry isn’t all rainbows and bunnies. There are a number of risks that graphic designers will be exposed to on a daily basis.
You Have To Know Your Risks
When it comes to designing an insurance package that best suits your business’s needs, you have to know your risks and how best to mitigate them. The biggest risk that you will face is a lawsuit. There are a number of ways that a lawsuit can arise. For one, if you provide a customer with less than quality work or make a mistake that ruins their entire project you will be considered negligent. This gives the customer the legal right to file charges against you and take you to court. Whether you are guilty or not, you are going to spend thousands of dollars defending yourself. And, this is not to even mention what happens if you lose the case.
This is just one of the many risks that you are exposed to. You might also find yourself facing the following risks:
- Copyright infringement
- Vandalism and theft of your property
- You could damage a client’s property
- Your property could be damaged
- Your network could be hacked
- Your employees could damage a client’s property
Whether you are a sole proprietor or you run a huge corporation it will be vital to acquire the right insurance policies to safeguard yourself and your business against these risks.
Know The Basic Insurance Policies
Graphic designers insurance can be bundled and made up of several different policies combined together. Of course, you don’t just want to invest in ever coverage available because this would get rather expensive. However, you do want to make sure that you are protected to the fullest extent. And, there is no better way to do this than by understanding all the policies that are available to you. It is best to start with the basic coverage policies.
- Commercial General Liability Insurance (CGL) – CGL insurance offers protection against third-party bodily harm and property damage claims. If one of your employees damages a client’s property this policy will pay the damages of said property. It will also cover court related cases in the event that customer wants to take the situation that far. It also protects your property from third-party claims. If a delivery guy slips and falls inside your office, commercial general liability insurance will cover medical expenses and court expenses related to the case.
- Commercial Property Insurance – Commercial property insurance was specifically designed to offer your office and its contents protection. In the event of a fire, theft, vandalism or natural disaster, commercial property insurance will offer financial shelter. If some breaks in and destroys your computers and breaks all your windows the policy will pay to have the computers and windows replaced.
- Business Income Coverage – In most cases, business income coverage will come included with your commercial property insurance policy. However, this is not always the case, so you will want to check with your provider. This policy offers financial shelter for the time that you are out of work due to the damaged property or equipment. For instance, it will pay for the income that is lost while your computers are being replaced in the above scenario.
Check For A CGL Package
Most small to mid-sized businesses qualify for what is known as a commercial general liability package. This is a convenient package that was specifically designed for low-risk businesses. It basically combines liability, property and business income coverage into one unique, affordable package. So, with a CGL package, you will receive the same type of financial shelter that you would receive with business income coverage, commercial property insurance and CGL insurance.
Graphic Designers Also Need Professional Liability Insurance
As a graphic designer, your clients will rely on you for expertise and quality. It will be your job to provide quality designs that make them stand out amongst the competition. A simple oversight or a negligent decision on your part could hurt the overall value of the product. This in fact might result in the client’s reputation becoming skewed. How do you think your client is going to take this? Not very good, and they are going to seek reprimands. Whether the claims are warranted or not the client has the legal right to take you to court, which will tie up resources and money. This is where professional liability insurance offers some protection.
This policy will cover any court related fees. The policy will cover court fees; lawyer fees and it will even cover the settlement if the case is lost.
Homeowners Insurance Isn’t Enough
Most small time graphic designers have the ability to work from home. Sure, this is great and it can afford you many benefits. However, what you need to know is that your regular homeowners insurance doesn’t offer the protection that you need. In fact, a typical homeowners policy will only offer right around $2,500 worth of coverage. This won’t even be enough to replace a computer. That being said, you do have some options available to you.
- Endorsement To Your Homeowners Insurance Policy – Any graphic designer that works from home has the ability to add an endorsement to their current homeowner’s policy. This adds an extra layer of protection and is perfect for the sole proprietor without a lot of valuable equipment. The policy can add an additional $2,500 or more worth of protection.