Protect Your Graphic Design Business with the Right Insurance Coverage

No matter your specialty — ads, websites, or print materials — your graphic design business lets you create to your heart’s content.

But even if you’re a seasoned graphic designer and have worked with many clients, there’s always a chance something could go awry. You don’t want to leave your hard work up to chance, which is where graphic designer insurance comes into play.

At Simply Business, we help graphic designers like you find the insurance policy tailored to your business needs. From disappearing files to disgruntled customers, graphic designer insurance can protect your business from the unique challenges you face in the industry.

Plus, we make it easy to get the policy you need — fast. We just need 10 minutes of your time, and we can show you the policies that have your back.

Ready to get started?

Business Insurance Policies Available for Graphic Designers:

• Professional liability insurance
• General liability insurance
• Workers compensation insurance

Benefits:

• It can protect your business from certain claims.
• It can cover damages caused by your negligence.
• Proof of insurance can help clients feel good about your work.
• It may be required where you’re located.

What Type of Insurance Do I Need for My Graphic Design Business?

The kind of graphic designer insurance you’ll need for your business can include various policies. Each type of coverage can protect you from everyday risks and liabilities you may face in your line of work. The plans we recommend as part of your foundational coverage include:

Professional Liability Insurance

What happens if a client claims you were careless with their project or that you made an error that harmed their business? Professional liability insurance (PL), also known as errors and omissions insurance (E&O insurance), can protect you from these situations.

Professional liability insurance is a policy that protects your business in the event a client alleges you made an error in the services you provided. In other words, graphic designer professional liability insurance can cover you and your business if your client claims you were negligent. It also can protect any employees you may have working for you.

How is PL applied in a real situation?

Let’s say you inadvertently made an error in a design for a client. As a result of the mistake, your client’s image is tarnished, and they lose business as a result of it. The client is upset and sues you for negligence. What happens next?

If you have professional liability insurance, the cost of hiring a lawyer to defend your business may be covered, as well as other expenses associated with the claim.

Here’s what professional liability insurance for graphic designers can cover:

• Negligence or alleged negligence
• Legal defense costs
• Omissions or alleged omissions
• Claims and damages
• And more

Keep in mind that professional liability insurance usually doesn’t cover:

• Intentional acts and omissions
• Property damage
• Medical expenses
• Bodily injury
• And more

Commercial General Liability Insurance

Do you have an office where clients meet with you to discuss projects? If you do, it’s a smart idea to invest in a commercial general liability insurance policy. This type of insurance — commonly referred to as general liability (GL) insurance — can cover the costs related to third-party accidents, property damage, or bodily injuries to a client, vendor, or other third party.

GL insurance is a core policy for many businesses because it can protect you from major claims and costs. Plus, with the average customer injury or damage claim running $30,000 — claims that you would likely have to pay out of pocket — businesses can’t afford not to have general liability insurance.

What might GL look like in a real business situation? Imagine that a client wants you to come into their office to help them work on a project. While in the office together, you knock over your coffee and damage several computers.

What now?

If you have general liability insurance, your policy may cover the cost of the computers, as well as any legal fees that arise if your client takes you to court (up to your policy limits).

To summarize, here’s what general liability insurance typically can cover:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Here’s what general liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Automobiles while in business use
• Expected or intentional injury or damage
• And more

Workers Compensation Insurance

If you employ any part-time, full-time, or even temporary employees, you may be required to carry workers compensation insurance. Workers compensation — or workers comp — can cover the costs associated with employee injuries or illnesses while on the job.

Most states require small business owners with employees to carry workers compensation insurance. To see your state’s requirements, check here.

Aside from state requirements, why is workers compensation insurance important for graphic designers? It’s estimated that the average work injury cost is $41,000.

Having to pay a claim of that size out-of-pocket could be detrimental to a business. Therefore, it’s essential to have workers compensation insurance even if you have only a few employees.

Workers compensation for graphic designers can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Should I Get Insurance for My Graphic Design Business?

Maybe you’re wondering if you really need business insurance. Or perhaps you’re just getting started as a business owner and aren’t ready to add another expense to your list.

No matter how careful you are or how many years of experience you have as a graphic designer, it’s imperative to protect the business you’re working so hard to build. And the truth is, the amount you’ll pay in premiums is minimal in comparison to the costs you could face if you aren’t covered.

What will you do if you break your client’s external hard drive while they’re on-site at your studio?

Or you’re sued because a design you created has a negative impact on your client, even through no fault of yours?

We may be able to minimize our liabilities and risks, but they can still happen. It’s best to be prepared for any situation you may face as a small business owner.

Here are some of the most common incidents small business owners can encounter, including their average costs:

• Reputational Harm — $50,000
• Client Injury or Damage — $30,000
• Client Slip and Fall — $20,000

As you can see, these situations come with significant costs. But if you have protection with graphic design insurance, your policy could cover some or all of the costs of these claims, as well as the costs of any lawsuits you might face (up to your policy limits).

How realistic is it that you may find yourself involved in a lawsuit? The answer might surprise you. Up to 43% of small business owners have reported being threatened or involved in a civil lawsuit at some point. A client could take you to court for something like negligence — even if you did everything right.

Don’t put your hard work at risk. With Simply Business, we make it easy to find the insurance coverage that works harder (and smarter) for your business, at the right price. Just answer a few questions about your business, and you can start comparing quotes in less than 10 minutes.

Plus, we can provide you with a certificate of insurance (COI), so you can begin showing proof of coverage right away.

Graphic Design FAQs

Why Choose Simply Business?

Simply Business is an online insurance brokerage that makes it easy to compare the best policies and quotes from top insurers in the country. We’re one of the fastest-growing online providers of small business insurance. That’s why thousands of customers trust us to protect their businesses.

Why choose us? It’s simple:

We’re fast and affordable. You have a lot on your plate, and you don’t have time to worry about your insurance coverage. Our policies are fast, affordable, and ready whenever you are.

We’re flexible with coverage. Your business changes over time, so you need an insurance policy that can keep up. We’re here to help make sure you’re protected no matter what your business needs.

We get your business. You deserve an insurance policy that understands your business from the inside out. We can help you get that coverage.

You work hard to build your graphic design business, and you should have an insurance policy that protects that hard work.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.