Freelancing with Confidence: The Insurance Essentials for Independent Graphic Designers

As a graphic designer, you manage your entire business — from creative work to bookkeeping to sales. But did you know you may need insurance too? 

Understanding the Risks Independent Graphic Designers Face 

You’re a designer; you’re busy with creative work. Obtaining or updating an insurance policy may not be what’s top-of-mind for you, and that’s totally fair. However, you may be accidentally putting yourself at risk:

• Errors and omissions: Any graphic designer can make a mistake. If your work contains a critical error and causes a significant financial loss for your client, you can be at risk for a lawsuit.
• Copyright infringement: It’s possible to accidentally use a copyrighted image or design without proper licensing. If this happens, you can be sued for copyright infringement.
  
• Breach of contract: If you miss a deadline or don’t fulfill your obligations, a client can accuse you of breach of contract. As a result, they may sue you for a financial loss due to incomplete work.
  
• Client dissatisfaction: Design can be very subjective. If your client is unhappy with the product, they may want you to  compensate them financially.
  
• Accident or injuries: If you meet with clients onsite, you can be at risk for a lawsuit relating to an accident or injury. If you have employees, you could be financially responsible if they become injured or sick while on the job.

• Property damage: If you damage someone’s property in the normal course of business.

• Cybersecurity breach: If you experience a cyberattack and client information is stolen, it can be costly. You may be responsible for a number of expenses, including:
  • Finding and fixing the breach
  • Notifying your clients
  • Providing credit monitoring for affected clients
• Defamation and libel: It’s more common than you may realize. Sometimes designers create imagery that offends a client’s competitor. If you portray another company or person in a negative way, you’re at risk for a defamation lawsuit. 

Essential Insurance Coverage for Independent Graphic Designers

Independent graphic designers need comprehensive liability insurance coverage. This includes a few different types of insurance, including:

Professional Liability Insurance

This type of insurance safeguards you against claims of negligence, errors, unsatisfactory design services, or even missed deadlines. It also can protect you if you’re accused of copyright infringement. A professional liability insurance policy can help pay for legal fees, hiring a lawyer, and settlements if you’re sued by a client.

Let’s say you designed a logo, but your design looks similar to another brand. If the logo is publicized, someone could sue you for copyright infringement. Your professional liability insurance can protect you from a financial loss.

General Liability Insurance 

This coverage can help protect you against costs related to third-party bodily injury. It can also help pay for property damage or lawsuits related to advertising claims (like defamation). If you rent or own a physical work space where you meet with clients, it is critical to have general liability insurance. It may even be required by your landlord in a lease.

For example, a client visits your workspace, and they trip and fall. If their injury is serious, they may sue you for medical bills, loss of work, and more. Fortunately, general liability insurance can help cover the costs.

Cyber Liability Insurance

Online criminals are on the rise, so it’s a good idea to consider safeguarding freelance graphic design business with cyber liability insurance, especially if you deal with sensitive information. If you are hacked and information is stolen, a policy can cover recovery costs and potential liabilities.

Business Personal Property Insurance

Many graphic designers own top-quality computers, monitors, and software. You may even own an expensive camera. If your equipment is lost, stolen, or damaged, a business personal property insurance policy can help. If you rent equipment and it becomes damaged, your policy can protect you too.

How to Choose the Right Insurance Coverage

We make finding insurance for your graphic design business simple. We can help match you with a policy to cover your business needs, as well as your budget. To help you learn about your coverage options, check out: The Designer’s Insurance Mood Board: Coverage Options to Fit Your Style. 

You can trust Simply Business to help you find the right policy. We’ve helped more than 1 million customers worldwide, including many independent graphic designers. 

Our fast and easy online process offers you a quote for coverage in just a few minutes. If you have any questions along the way, our agents are here to help. Call a member of our team Monday through Friday, 8 a.m. to 8 p.m. (ET), at 844-654-7272.

From Concept to Creation, We’re Here

We do much more than insurance. At Simply Business we offer a wealth of resources to help small business owners become successful. Our Resource Center features information about insurance, as well as guides, tools, and tips to help your independent graphic design business grow.

While you’re there, we recommend: 

• A General Liability Insurance Guide for Small Business
• What is the Best Small Business Insurance?
• What is Professional Liability Insurance? A Guide for Small Business Owners