Whether you’re a freelancer, a contractor, or you run your own design firm, you devote a lot of time and energy delivering unique and attention-grabbing designs for your clients. Frankly, this may not leave a lot of time for handling the administrative side of things. And tasks like finding and managing your insurance coverage can feel challenging.
That’s where we come in. We’re small business insurance experts and we want to make shopping for the coverage your business may need hassle-free and quick. This guide explains some insurance terms and topics you’re likely to encounter and explores coverage types we typically recommend for graphic designers.
Common Insurance Terms Defined
Aggregate limit.
The aggregate limit on an insurance policy is the maximum amount of compensation your insurer will pay out for covered losses over a specified period of time. That time period is typically the duration of your policy term depending on the type of policy.
Claim.
Simply put, a claim is a formal demand for compensation following a covered loss. The claim information will likely include your policy information, as well as details regarding the loss and possibly any other parties involved.
When you, an employee, or another third party experience injury, damage, or another eligible loss resulting from your work, you will have to file a claim with your insurance company. This will set the processes in place to start a review by the claims adjuster, and potentially help the injured party receive compensation, provided the loss is covered by the insurance policy.
Endorsement.
If you customize your insurance policy by adding or subtracting coverage, these amendments are referred to as endorsements. Common endorsements — which are also known as riders — often can include changing your policy limits or adding an additional insured.
Loss payee.
The loss payee is the party who receives compensation as the result of a claim. This may be you, the policyholder, but it varies based on the type of loss, as well as the coverage you have. For example, if a client claims that a design you delivered infringed on another company’s copyright, they would likely be the beneficiary of the claim so that they can cover the subsequent damages.
Premium.
The amount you pay to maintain an active insurance policy is called the premium. Your premium may be a monthly payment or a lump sum at the start of the policy period, depending on your payment plan and the type of policy you have.
Key Insurance Concepts Explained
Professional Liability Insurance.
Professional liability insurance is a type of coverage we typically recommend for graphic designers because frankly, mistakes can happen to even a seasoned professional. Professional liability insurance can help cover:
- Negligence or alleged negligence
- Omissions or alleged omissions
- Legal defense costs (up to your policy limits)
- And more
Here’s how it can help you as a graphic designer. Imagine you deliver a finished infographic to your client. The client puts the design live on their website without realizing that it contains an error. This could be detrimental to the client’s image and may cause them to lose out on business. They take legal action against you. Without professional liability, you may be on the hook for the damages, as well as your own legal costs.
General Liability Insurance.
For a graphic designer, general liability insurance also may be beneficial. General liability is a foundational coverage type for many small businesses. It can cover:
- Third-party bodily injury
- Third-party property damage
- Personal and advertising injury
- And more
What does this mean for a graphic designer? Let’s focus on personal and advertising injury. Say you complete an ad design for a client. Without realizing it, your design strongly resembles a competitor’s copyrighted design. Carrying general liability insurance coverage may be able to help you avoid paying for a copyright claim out of pocket (up to your policy limits).
Cyber Insurance.
Another type of liability insurance coverage for graphic designers to consider is cyber. Cyber insurance provides financial protection in the event of a cyberattack or data breach. A policy will generally cover costs related to:
- Finding and fixing the breach
- Notifying clients
- Providing credit monitoring for impacted parties
- And more
Your clients trust you with their data, and you depend on your software and hardware being secure enough to make it possible. But hackers are tricky. If you experience a cyberattack and your clients’ information is leaked, your professional reputation could be on the line. Having cyber insurance can provide the necessary financial support to assure your clients you’re proactive and well-prepared.
Workers’ Compensation Insurance.
If you have employees — even just one — workers’ comp is a coverage that you shouldn’t overlook. Not only does it provide peace of mind for you and your team, it also may be required in your state. Workers’ comp provides financial protection for employees who become injured or sick as a result of their work. Eligible costs typically include:
- Medical payments
- Lost wages
- Rehabilitation expenses
- Death benefits
How to Choose Graphic Design Insurance
Finding coverage that’s best suited for your graphic design business may seem confusing. The coverage you need will depend on a variety of factors, such as where you work, whether you have employees, and the type of work you typically perform.
That’s why, at Simply Business®, we’re helping to take the guesswork out of shopping for small business insurance. With our online quote comparison tool, you can browse policy types curated for your business, from some of the leading insurers in the industry. And it takes just a few minutes. Answer a few questions regarding your graphic design business, and we’ll guide you through the rest. It’s that simple.
Get Insured in Under 10 Minutes
Get an affordable and customized policy in just minutes. So you can get back to what matters: Your business.
Designed, Sealed, Delivered
Understanding your insurance coverage doesn’t have to be complicated. In fact, it shouldn’t be. With our guide and a bit of research, you can design your own combination of policy types that best suit your business’s insurance needs.