Have you been thinking about what type of graphic design insurance you can take as a graphic designer? I believe working for yourself is a satisfying achievement. But entrepreneurship comes with risks, even if you provide everyday services like graphic design. As a graphic designer, you need to understand your potential liabilities and deficiencies and cover yourself against these situations with the appropriate insurance policies.
This post looks at five types of graphic design insurance that can protect you from the costs of lawsuits and other accidents. This coverage includes professional liability, commercial general liability, equipment, cyber liability, and business income coverage. But before that, let’s take a look at some FAQs on graphic design insurance.
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Why Do You Need Graphic Design Insurance?
Deliberately duplicating another artist’s work is something you would never do. Still, navigating copyright can be a balancing act for graphic designers. Something as simple as the colors and fonts you use can lead to copyright infringement claims from creative or branding you’ve never heard of. Then, of course, there is the matter of working with images from popular culture: it’s easy to make a mistake. By creating the right graphic design insurance package, you are protected if an unexpected copyright claim arises.
You are a seasoned professional and you know a thing or two about contracts. Still, clients can make accusations. A spilled drink in the studio can wipe photos of irreplaceable clients off your tablet, meaning the job just can’t get done. Or you can create a design that the client finds inappropriate; after all, the world of graphic design is subjective. If a typographical error is printed, correcting the error can be expensive. Therefore, the right coverage can be a lifesaver for your finances.
Is Insurance A Legal Requirement For Graphic Designers?
Employer’s liability insurance is required by law for graphic designers who employ others, including part-time or volunteer workers such as interns or work experience students. Other types of insurance are not required by law for graphic designers, but working without it can cost you dearly if equipment breaks or a client files a lawsuit.
Legal challenges pose a significant risk to graphic designers. These come from things like copyright infringement claims and accusations of non-delivery. Without proper coverage, businesses of all kinds can face legal fees for failing to meet their obligations to the public, in addition to insurance claims.
Now Let’s Look At 5 Types of Graphic Design Insurance Every Graphic Designer Should Have
1. Professional liability/error and absenteeism insurance
As a freelance graphic designer, you are an advisor to your clients. Provides advice on website design, marketing campaigns, and more. As a consultant, you are also open to liability if your services can be considered negligent. Poor quality work can cause delays for your client that cost you money.
For example, if you finish a design and the client implements it only to realize that there is a spelling error; your client must correct it. Corrections can cost significant delays and money. As the responsible party, the customer may pass these costs on to you through a lawsuit. Professional liability insurance, also known as absenteeism and error insurance, can cover these costs and associated legal costs.
Professional liability insurance can also be helpful in times of copyright infringement. Even if you didn’t intentionally copy someone else’s work, minor similarities between your design and someone else’s could give rise to a copyright claim. If someone claims you stole their design, professional liability insurance can help cover the costs associated with legal fees and any damages awarded to the person claiming you infringed their work.
2. Commercial Civil Liability Insurance
Commercial general liability (CGL) insurance generally covers all damages related to personal injury or property damage to a third party for which your company is responsible. Typically, your job might include a computer and coffee, client emails, and the graphic design software of your choice, but that doesn’t mean this harm can’t arise.
If a client arrives at your studio or office and trips over a tightrope or an icy sidewalk, the resulting injury could lead to a claim for damages. This damage is exactly what a CGL policy would cover. A CGL policy can continue to protect you when you work offsite. If you or your employee accidentally breaks a customer’s property in your office, a CGL policy may cover the costs associated with replacement or repair.
3. Equipment Insurance
You can’t design without the right tools to help you. A computer and mobile phone are essential, and other tools such as a camera, tablet, or drawing pad may also be necessary. If you spill water on your laptop or if someone steals it, it can cost you thousands of dollars in out-of-pocket costs. Fortunately, equipment graphic design insurance can protect you by covering the cost of repairing or replacing the insured equipment.
Also, suppose you have a separate study or office space. In that case, this policy can be converted to a commercial property policy, which can protect you if something happens to your workspace, like a natural disaster or vandalism. A commercial property policy may also cover equipment in your studio or office.
4. Business Income Coverage
If your computer is repaired or your creative studio is destroyed, it may mean that you cannot continue working until the situation is resolved. And if this is true, you won’t see any income until then.
Business income coverage graphic design insurance can compensate you for periods when you are unable to earn an income due to an insured loss. This can help you keep track of your business expenses and pay for yourself and your employees.
5. Cyber Insurance
More than ever, freelance creatives are keeping vital and sensitive information about their clients on their systems. A cyber attack or malware could cause the wrong kind of people to access this information. This can lead to unforeseen costs associated with the loss of customer information, data recovery, and more. Cyber insurance may eventually cover some or all of these costs, so you can focus on your business and not computer viruses.
As a freelance graphic designer, you take a lot of risks running your business. Different insurance policies can mitigate the cost of these risks, such as property damage, negligent service, cyber security attacks, and more. The right coverage gives you peace of mind as you go about your business.
6. Workers’ compensation insurance
If you have employees, you may be required by law to have workers’ compensation insurance. This type of insurance can provide benefits to employees who suffer work-related injuries or illnesses.
It’s important to note that the specific insurance needs of graphic designers may vary depending on factors such as the size and scope of their business, the types of clients they work with, and the specific risks they face. It’s recommended that you consult with a licensed insurance agent to assess your individual insurance needs and find the right coverage for your business.
Try to get one of the Graphic design Insurance listed above. As a freelance/professional graphics designer you will find it needful. Hope you find this helpful see more graphic design resources at vdtips.com