Graphic Designer Insurance
As a graphic designer, you need protection for yourself and your business against lawsuits related to professional errors, business interruptions, and other possible threats.
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Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Graphic designers have an artist’s flair and the technical savvy to produce computer-generated images and designs, websites, and videos. But while the graphic design industry may seem low-risk, there are some serious exposures you need to be aware of. These can include possible customer lawsuits, company property damage or theft, and more. Whether you're an independent designer or a design firm owner with employees and a significant amount of business property, you need comprehensive graphic designer insurance tailored to your needs.
Luckily, an independent insurance agent can help you find the right graphic design insurance. They'll get you or your business equipped with all the necessary coverage. Up first, though, here's a breakdown of insurance for graphic designers, including what it covers and more.
Why Do You Need Graphic Design Insurance?
Graphic designers insurance is a special type of business insurance customized to meet the needs of professionals and businesses in this unique industry. If you work in the graphic design field, you're vulnerable to a number of different risks, including:
- Copyright infringement
- Theft, vandalism, and other crime
- Professional errors and negligence
- Damage to a client’s property
- Damage to your business property
Your business may also face other threats not listed above. To help protect your company's assets, the right kind of graphic designer insurance is necessary. This coverage can help reimburse you or your business for the costs of lawsuits and much more.
What Does Graphic Design Insurance Cover?
Business insurance for graphic designers is made up of several types of standalone or packaged policies that are customized for your industry's unique exposures. In general, you can expect to find some or all of the following types of business insurance in a graphic design insurance policy:
- Commercial general liability insurance: This offers broad coverage for expenses arising from lawsuits related to third-party bodily injury and property damage claims.
- Commercial property insurance: This protects your business property, like buildings and inventory, if it gets destroyed, stolen, or damaged by fire, lightning, vandalism, etc.
- Business interruption insurance: This pays for ongoing expenses (e.g., revenue, rent, employee salaries, etc.) if you're unable to operate or must temporarily relocate after a covered loss such as a fire.
- Workers’ compensation insurance: This covers expenses like partial lost wages and medical treatments for employees who get injured or ill due to their job or work environment.
- Employment practices liability insurance: This protects your business against employee lawsuits related to claims of illegal business practices like sexual harassment, discrimination, etc.
- Cyber liability insurance: This can reimburse your business for lawsuits and other expenses resulting from data breaches or cyber-attacks.
- Business owners policy insurance: This is a convenient package policy designed for small, low-risk businesses that includes liability, commercial property, and business interruption coverage in one affordable package customized for your business.
If you're in need of car insurance for graphic designers, you might want to look into a commercial auto insurance policy. This can provide coverage for business vehicles used for work purposes, such as making deliveries, against various threats like lawsuits, theft, and more.
However, if you or your employees use personal vehicles for work-related tasks, you'll need to look into hired or non-owner car insurance. Your independent insurance agent can help you find either of these coverages.
Why Graphic Designers Need Professional Liability Insurance
Your clients rely on you for your skills and expertise. Along with your artistic abilities, you provide advice on branding and create materials that likely become the public face of your clients. A mistake or negligence on your part could harm a client’s reputation and even cause financial harm to them.
That's why freelance graphic designer insurance policies must include professional liability insurance as well. This critical coverage protects you and your business if your advice or services cause some type of harm to a client.
Clients may decide to sue you or your design firm after a claim of an error on your part. If you don’t have the right graphic designer professional liability coverage, your personal assets could be at risk. Your graphic designer professional liability policy pays for your legal defense, including attorney and court expenses and any settlements you must pay.
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Insurance Considerations for Graphic Designers Who Work from Home
If you work out of your home full-time or even just some of the time, you may be uninsured or underinsured if you think you have enough coverage under your homeowners insurance policy. A typical homeowners insurance policy limits coverage for office equipment to around $2,500, which is typically not enough to replace a computer, printer, phone, desk, fax, scanner, or other equipment or supplies you need for your graphic design business.
Further, your homeowners insurance does not cover business liability, loss or damage of business records, and damage caused by business interruption. Luckily, if you have a home office, you have several options to ensure you have appropriate coverage:
- Endorsements to your home insurance policy: Independent graphic designers can add an endorsement to a home insurance policy that provides more coverage for the home-based business or home office. This option is viable for one-person businesses without a lot of valuable equipment or business-related visitors. This type of endorsement typically adds about $2,500 in business equipment coverage as well as some additional liability protection at an affordable price.
- Home-based business insurance: Some insurance companies offer a specialty policy for in-home businesses or home offices. The in-home business policy includes certain features of business insurance policies designed for larger firms but with much lower policy limits. It typically provides business property coverage of $10,000 and a liability coverage limit between $300,000 and $1 million. It may also provide limited coverage for loss of valuable documents, accounts receivable, off-site business property, and use of equipment.
- Business owners policy (BOP) insurance: A BOP is often recommended for home-based business owners who need more than $10,000 of business property coverage as well as liability coverage for customer injuries and business interruption coverage. These policies can be a highly affordable answer for many small business owners.
An independent insurance agent can help recommend the right kind of coverage for your home-based graphic design business.
An Independent Insurance Agent Can Help You Find Graphic Designer Insurance
Whether you're an independent graphic designer or the owner of a larger firm, an independent insurance agent can get you fast quotes for graphic designer insurance. They can shop and compare policies from multiple carriers that offer graphic design insurance and present you with the results that offer the best blend of coverage and cost. And down the road, your agent can help file business insurance claims for you or update your coverage as necessary.