Creatives – Make Sure Your Business is Protected From RisksSeptember 13, 2021
It is easier than ever for creative business owners to make a living from their talents. There is plenty of work for freelancers on sites like Upwork, Fiverr, Contra, and more. LinkedIn is launching a new platform for freelancers this year, and sites like Patreon have allowed artists and creatives to sell their art in innovative ways.
With this explosion of creative talent comes new risks. If you are just starting your creative business, you need to know about the risks you may face so you can help protect yourself and your new creative business. If you have had your creative business for a while, it is a good time to review your insurance policies and coverages to be sure nothing is missing.
Remember, it is often inexpensive to add more insurance coverage. If a claim happened and you didn’t have proper coverage, the claim costs would be much more than the premiums for the additional coverage. This peace of mind can be invaluable when it comes to your business and livelihood.
Read on to learn more about the risks and exposures faced by creative businesses and how insurance can help protect you, then contact us at Duliban Insurance Brokers for more information.
Creative Businesses Have Unique Insurance Needs
Whether you are a photographer, writer, graphic designer, or some other type of creative business owner, you have lots of things you are balancing as you manage your business. Insurance is an important aspect of your business to consider – as you are running your business and creating your art, your insurance policies protect you from many risks so you focus on creativity and innovation.
While you should have several general insurance coverages just like any other business owner (like a Business Owner’s Policy or Commercial General Liability Policy, for example), there are some specific coverages that you may not have considered. If you are a creative business owner, consider these types of coverages below:
- Professional Liability (Errors & Omissions) – Professional liability policies are available for many professionals, like doctors (malpractice), lawyers, architects, engineers, insurance agents, and accountants. But it also protects people employed in the business of giving advice, like consultants. The policies help to protect against errors and omissions in the advice you give during your professional career. It can also help protect against a breach of professional obligations.
- Media Liability Insurance – Media liability insurance is designed for authors, writers, publishers, and others working in media to help protect against claims from libel, slander, and plagiarism. If your business is in the media industry, this type of coverage is probably excluded from your Commercial General Liability policy. Hence, a separate Media Liability policy is a smart move.
- Body Parts – You have probably heard of models or athletes insuring various body parts, like David Beckham’s legs and face (£100 million) or Bruce Springsteen’s voice (£3.5 million). But artists can do the same thing – if you paint, sculpt, play an instrument, or otherwise need your hands (or another body part) to create your art; you could insure your hands against damage. These are not standard insurance policies, so you may need to work with your agent to find a non-standard policy for this type of coverage. Depending on the type of work you do, this may be important coverage. If you were to lose income if something happened to your body part, you should consider insuring it.
- Product Liability – Product liability cover may be included in your Commercial General Liability policy. Still, depending on the type of work you create and sell, you may want an additional Product Liability policy. This type of policy can help protect you from consumer claims of damages and injuries from the goods you sell. A writer selling their books may have fewer exposures than an artist selling sculptures.
- Cyber Coverage – Your Commercial General Liability may afford some cyber coverage, but you may wish to purchase a separate policy. Cyber risks include things like malware and ransomware attacks. Policies can help with recovery efforts, notification after data breaches, and public relations, as well.
Consider some of these special coverages and others, depending on the nature of your creative business, as you decide if you need additional insurance.
Does Your Creative Business Need Additional Coverage?
If you are unsure if your creative business needs additional insurance coverage, we can help by reviewing your current policy and pointing out any potential gaps in your coverage. Comparing rates and options is always a good idea to ensure the coverage you are shopping for is adequate for your creative business’s unique exposures.
While insurance can be complicated, it does not have to be time-consuming to protect your assets. Taking stock of your policies annually and meeting with your agent to review any new exposures, particularly when you start creating or selling new products, is a best practice. If everything in your business has stayed the same, it may be a quick process to review your coverage and correct any gaps.
Creative businesses have lots of insurance needs, and many of them may be unique to the type of work you are doing. Talking with your agent about your day-to-day work, the projects you take on and the clients you have, and how you manage your business can help them identify your risks and show you ways to manage these exposures. Be sure to meet with your agent if your business changes drastically or begins to do work in different ways – this may bring new risks that need protection.
The right insurance coverage is critical to the success of your creative business. We can help you make sure your business is protected before a claim happens!
How do I Learn More?
To learn more about commercial insurance for creative businesses, contact the experts at Duliban Insurance Brokers. Our licensed experts will be happy to answer any questions you have.
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