As a professional graphic designer, it is essential that you produce precise and quality work for your clients. The skills and experience you possess are vital in delivering an excellent piece of art. While you could be an experienced graphic designer, things can go wrong. When things don’t go according to plan, your client can file a claim against you.
Consequently, your graphic design business will face devastating losses that affect its operations. Even though you cannot avoid such accidents and incidents, there is a way you can protect your graphic design business — by getting graphic designer insurance.
Graphic designers insurance is essential for your business venture and will help protect against devastating losses. To enlighten you on the importance of this insurance, we will discuss what it covers, why you should get it and how much it costs. We also discuss factors that determine the cost of this insurance cover.
Graphic Design Liability Insurance
Graphic design insurance is necessary for your graphic design business. This insurance policy covers a wide range of claims, protecting you from both financial and professional damage. Some of the areas covered under this insurance policy include;
Being a professional, you know essential details about contracts. While contracts are clear and straightforward, some clients can still make accusations. Drinks might spill over to your client’s irreplaceable photographs while working in the studio — you cant redo the work.
Similarly, you might work on a project that your client considers off-brief, filing a claim against you. In graphic design, simple mistakes are costly. For example, if you print a single typing error, it could cost you a lot of money to fix that mistake. All these cases could result in your client filing a claim against you. However, with graphic design business insurance, your business is protected.
Graphic design is an extensive field that is highly technical. Your workstation is more likely to have a desktop, laptop, or advanced printer equipped with high-quality software. This equipment helps you perform your duties as s graphic designer. Given the high value of your equipment, it is essential to insure it.
This is important because you can predict when it will sustain damage. Unexpected accidents fire outbreaks could damage all your equipment, leaving your graphic design business on the verge of closure. With graphic designer insurance, the cost of such damages is taken care of. You won’t have to spend a lot of money replacing damaged equipment.
As a professional graphic designer with integrity, you will never purposefully duplicate another designer’s work. However, it is still challenging to navigate the copyright law regarding graphic design. Simple aspects like the fonts and colors you use could result in copyright claims against you. Some claims could be ridiculous, especially when they come from brands or creatives you have never heard of. In addition, using images from pop culture could also land you a claim. The owner of such images could sue you for damages and copyright, resulting in financial losses. Luckily, with graphic design insurance, you protect your business against such claims. This goes a long way in protecting your business against bad reputation and financial damages.
Professional Indemnity Insurance for Graphic Designers
It is essential to have professional indemnity insurance for your graphic design business. Should a client take legal action against your business, this insurance policy will limit the damage. We will discuss what it covers to enlighten you on the importance of professional indemnity insurance for graphic designers. Some of the areas this insurance covers are;
Breach of Contract
If your client feels you have caused them losses by breaching your contract, they will file a claim against you in an attempt to recover from losses. For example, if you don’t deliver work within the agreed timescale, your client will use it as an excuse to file a claim. Professional indemnity insurance for graphic designers will protect your business against this severe claim.
When you fall out with your client, they might refuse to pay all or any of your fees. This clause means that if your client fails to pay you because they are not satisfied with your work, your insurer will pay you the money owed. However, the payment is only made when the insurer is sure it will prevent a claim for more amounts. This is important because it prevents unnecessary losses.
Mistakes in Your Work
You might be an excellent graphic designer, but you can still make mistakes. Thanks to the negligence clause in the professional indemnity insurance for graphic designers, your business is protected against claims arising from such errors. When you make a mistake on any project, your client could want to recover compensation by filing a claim.
It is important to note that settling claims arising from professional errors costs a lot of money. The average settlement for such cases is $65,000. This is a lot of money that could lead to bankruptcy. Therefore, it is vital to get professional indemnity insurance cover for graphic designers.
Factors Determining the Cost of Graphic Design Insurance
Several factors determine the cost of graphic design insurance; some of them include;
The policy terms you choose determine the cost of your insurance cover. Choosing a higher coverage could increase the cost of the policy. Similarly, setting an earlier retroactive date could also result in higher prices.
If you have an established graphic design company, you will need higher coverage that costs more. On the other hand, those with start-up businesses can choose lower coverage given the size of their business.
The state your business is located in could also affect the cost of insurance cover. This is because some states have liability coverage minimums that could increase the price.