Owning a design studio can be professionally satisfying. It’s a way to combine entrepreneurial interests with creative talent. There’s a chance that you’re bogged down by design work (we hope that’s true for you!), which means you may not be thinking about business liability insurance. However, purchasing insurance can help your studio grow and safeguard your assets, and we’ll help explain how.
Understanding the Risks That Design Studios Face
Graphic designers and illustrators can face risks on the job, including costly lawsuits. For example, a design studio could be sued for:
- Intellectual property infringement
- Errors and omissions
- Breach of contract
- Accidents or injuries
- Defamation and libel
- A cyber security breach
- And more
You can learn more about the risks of owning a design studio on our page: Protecting Your Creative Assets: Insurance for Graphic Designers and Illustrators.
How Business Insurance Can Support Growth
Professional liability and general liability insurance can protect your business and help it grow. Here are a few key reasons why every designer needs these policies.
Insurance protects against financial loss.
If you are sued, your insurance can help cover the costs of hiring a lawyer, legal fees, settlements, and more. Ultimately, business liability insurance can help keep your design studio financially strong if you face a claim. It also can prevent you from having to dip into your savings to pay out of pocket for any damages.
Insurance can attract and retain clients.
Carrying liability insurance can improve your reputation and trust among customers. It means you take your work seriously and are prepared to handle the costs of a lawsuit. It also demonstrates professionalism and a commitment to quality. These are qualities that are attractive for customers and can help you increase your business.
Insurance enables business growth and partnerships.
You may need liability insurance coverage before you sign a lease on a studio or collaborate with a business partner on a project. Having a policy can open doors to new business opportunities and increased revenue.
Insurance may be a business requirement.
Some clients may require proof of insurance before signing a contract with you. This is one way to ensure they are financially protected if a lawsuit arises. Insurance also may be required if you have a business license in certain states.
Insurance provides peace of mind.
When you have insurance on your design studio business, you can feel at ease. Insurance helps cover unanticipated costs and or the consequences of unexpected risks, so you can focus on creativity and growing your business with new clients.
How to Choose the Right Insurance Coverage for Design Studios
We make getting a business insurance quote for a design studio easy and fast. Just spend a few minutes with our online quote tool. We’ll help you compare quotes from leading national insurers.
While you compare quotes, you’ll want to think about:
- Your design studio’s risks. Consider your design services, which industries you work with, and your clients. If you handle intellectual property and sensitive information, you may be more at risk.
- The type of coverage you need: As a designer, you should consider purchasing professional liability insurance, also known as errors and omissions insurance. It can help pay for lawsuits related to professional errors, negligence, and other disputes. If you own or rent a physical studio, you may want to buy general liability insurance too. This policy type can protect you against claims for accidents and injuries, as well as advertising-related claims, such as defamation.
- Your budget and financial needs: Business insurance may be an expense, but it can be affordable. Think about how much you can pay for a policy, as well as the coverage you actually need. Consider if you need to add more insurance to protect against cybersecurity breaches, property damage, and more. If you work in a highly regulated industry with sensitive information, you may want to consider that extra coverage.
You can learn more about insurance for design studios by reading: Freelancing with Confidence: The Insurance Essentials for Independent Graphic Designers.
At Simply Business, we’ve helped more than 1 million customers worldwide find business insurance. Our online quote form makes comparing insurance policies for graphic designers almost effortless. Within minutes, you can find a policy that fits your budget and protects you.
If you have questions or need help, talk to a member of our team. Our agents are available to answer questions Monday through Friday, 8 a.m. to 8 p.m. (ET), at 844-654-7272.
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Here to Support Your Business
Most business owners come to us for insurance — but we do so much more. We offer a comprehensive Resource Center where you can learn more about business liability insurance for design studios. You can also get helpful tips, guides, and tools for growing your design business. It’s a library of information to help you get your design studio organized and growing as quickly as possible.
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