Small business insurance for graphic designers
If you’re like many graphic designers, you may have started working for your first client before you had even officially set up your business. More than half of specialised designers are sole traders and freelancers, and many work from home.i As a result, many graphic designers have never taken the time to consider whether they are adequately insured. Although, as a designer, you may not have stock or premises to protect, you still face a number of significant risks. In this article, we discuss these risks, and which types of insurance can provide cover.
Public liability insurance
Public liability insurance covers your business if it is legally liable for property damage or personal injury. This can include claims from individuals who injure themselves on your business premises, whether it is an office or your home. If a customer visits your home or office and is injured by falling down the stairs and you are held liable for the incident, public liability insurance can help provide cover for the costs of the injury suffered by the customer.
Personal injury and property damage claims are among the most expensive risks a business faces – so it’s no wonder we’ve found that 89.5% of the small businesses we cover have taken out public liability insurance.ii
Contents and property insurance
If you’re a graphic designer, you’re likely to own a high end computer, tablet, and a colour accurate monitor. You might also own pantone colour references, drawing materials, and photographic equipment. This equipment is expensive to purchase. You can cover all your business contents for damage at your business premises by taking out material damage insurance. If you want to make sure you’re covered while out and about, you can also take out general property insurance, which insures your equipment worldwide.
Professional indemnity insurance
Professional indemnity insurance insures your business should claims arise out of the provision of your professional services as a graphic designer.
One of the most important lawsuits that professional indemnity insurance can provide cover for is claims for, misleading or deceptive conduct that relates to provision of professional services. This might arise where your communications with your client created a false or inaccurate overall impression of your work.iii Or, it may be that your client has certain beliefs about your work which were not corrected.
Professional indemnity insurance can also provide cover for claims for breach of intellectual property rights or copyright. When you purchase the rights to use design assets in client projects, these assets usually have attached conditions. It can be easy to break these conditions without realising, for example, if your client produces more copies of a publication than originally planned, or if they use these for a period longer than the conditions allow. Professional indemnity insurance provides cover if these type of mistakes occur.
Electronic equipment insurance
You can also insure electronic equipment, such as your computer, for breakdown with electronic equipment cover. This cover includes the cost of hiring temporary equipment, to make sure you have a computer to be able to work.
In this article, we’ve discussed the three main types of insurance you may need to insure yourself as a graphic designer. However, as every graphic design business is different, make sure you consult your broker and ask them to take into account your unique business needs before purchasing. Alternatively, you can call your insurer to discuss the options available.
The Allianz Office Pack includes professional indemnity insurance, which we may be able to offer depending on your business activities and history. This is only available by calling our contact centre. Other types of insurance we’ve discussed are available online. If you would like to discuss the insurance options available to you, give us a call and speak to one of our friendly team members on 1300 131 000.
iAustralian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exists, accessed 15 June 2018, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Det_blankailsPage/8165.0Jun+2013+to+Jun+2017
iiThe percentage is based on actual numbers of such Allianz Small Business Direct insurance customers of the office business type that held public liability insurance for the period 1 January 2012 – 30 September 2017.
iii Australian Competition & Consumer Commission, Advertising and Selling Guide, accessed 15 June 2018,https://www.accc.gov.au/publications/advertising-selling/advertising-and-selling-guide/avoid-misleading-or-deceptive-claims-or-conduct/misleading-or-deceptive-conduct