Business insurance isn't exactly a sexy topic, but it's important to have. We’ve all heard horror stories of creatives ending up in a less than desirable legal situation, and it’s important to know and understand how to avoid those situations by learning some insurance basics for your creative business.
Whether you already have business insurance or not, you’ll find this information helpful. This post will walk you through what it is, why it’s important, and where to shop first for your insurance.
What is Business Insurance for a Creative Business?
If you’re wondering what exactly business insurance is, you’re not alone. So many creatives jumped into their businesses with both feet and just learn along the way, so it’s often a new topic for many small business owners.
In fact, you may have avoided getting this kind of insurance in the past because you weren't sure how it would fit into your business. And, let's face it, business insurance isn't exactly a hot topic in the creative industry, so it may not have even come up at all, yet. On top of that, it may have never occurred to you that you could be left vulnerable without it.
You can think of creative business insurance broadly as an additional layer of protection. This could be protection from allegations, being sued, or something as simple (but still devastating) as damage to your equipment.
There are a few different kinds of business insurance for creatives, and, depending on which provider you go with, your package may cover them all. Here are the three main types of insurance a creative would need:
Professional Liability Insurance: This insurance, also sometimes referred to as Errors and Omissions Insurance, is for financial protection against claims alleging a failure to deliver a service as promised.
Commercial General Liability Insurance: This insurance protects you from possible risks in your day-to-day business. For example: damage or bodily harm.
Equipment Insurance: This type of insurance is for the tools of your trade. You’ll be protected in case of robbery, theft, and other unforeseen events. These policies often cover replacement and repair of equipment.
Why is Business Insurance Important to Creatives?
While most creative professionals already have contracts in place, don’t let that alone lure you into a false sense of security. While contracts lay the foundation and expectations, insurance further protects you from liability in an even more clearly defined and legal way.
The peace of mind that comes from knowing your business is protected is priceless. Your insurance should not only protect you from liabilities like injury or damage, but theft as well.
When you have creative business insurance you aren’t just protecting yourself, you’re protecting your clients too. They also get the peace of mind that you are taking care of them by taking care of your business.
Imagine this: you’re doing a shoot with a client, when all of a sudden they trip on some lighting equipment and land flat on their back, resulting in an injury. You may be thinking, That won’t happen to me! but the truth is that these instances are much more common than you’d think.
Don’t put yourself in a pickle by not having a plan in place for the worst case scenario. As they say, you should always hope for the best, but prepare for the worst. And, as a small business owner, it’s important to step up and protect yourself before a bad situation happens.
Insurance Agencies Recommended by Our Builders
In one of our recent Tuesday Talks, our CB members (AKA our Builders) came together to discuss insurance. We brainstormed our favourite insurance companies so we could share them with the other creatives in our circle.
If you don’t have business insurance yet but you’re ready, here are some companies you can look into:
These are simply suggestions, so don’t be afraid to shop around. Do your research and make sure you’re getting a fair price and comprehensive coverage.
Protect Your Creative Business
Don’t leave yourself and your business open and vulnerable. Investing in business insurance is the responsible choice. By protecting yourself you can rest easy knowing that if the worst case scenario does come to fruition, you’ll be ready.
Want to learn more best business practices? Read this: Why Image Licensing is Important to a Photography Business.
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