Whenever you budget the expenses of your business, Commissioned Artists insurance must be near the top of the list because you can’t always know exactly what can happen in the future.
Need General Liability Insurance for Your Commissioned Artists
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With the protection provided by general insurance and all the other types of insurance we will tell you about, you can protect your business and yourself in case something unexpected happens.
Like any business owner, for your Commissioned Artists enterprise, you must consider how much financial liability you are taking on.
If your Commissioned Artists business runs without proper insurance, you are taking a giant chance not just of losing some money but of a complete wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the consequences of their actions.
In this article, we are giving very general guidelines for small businesses to outline what the main kinds of insurance that you need are, and where possible, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Commissioned Artists business?
What this means, for any Commissioned Artists business owner, is that if some person claims that your business caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Commissioned Artists business is not protected by laws in the same way as states are, where legislation can place a “cap” on the maximum level of liability.
In some states, like Montana, there are specific monetary levels that limit the amount a court can award in any case against the state.
In a court case, it’s purely the right of the jury to award whatever amount they deem appropriate, even sometimes giving a claimant more than they have sued for.
When you are running your Commissioned Artists operations, you can’t deny responsibility for the outcomes of your actions.
Even more importantly, unless you have spent beforehand the money necessary to have your business running as a limited liability company, all of that liability belongs to you alone.
What does Commissioned Artists insurance protect you from?
For your Commissioned Artists business, the most important kinds of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
Also there are some official kinds of insurance that various states require.
In the next few paragraphs, we will outline the most important points any Commissioned Artists business owner should consider when negotiating the insurance needed.
The main types of insurance for your Commissioned Artists businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any Commissioned Artists business is dealing directly with customers, and that means you usually have the danger that some accident can happen to them bodily or else something of theirs can be damaged.
In such a case, they can require compensation.
General liability insurance policy for your Commissioned Artists business covers you against claims coming from injury to clients or damage to their property.
It protects your Commissioned Artists business from the claims themselves and also to any resulting court costs and legal fees of the lawsuits.
In many cases, it will even help you to qualify for extra business from city and state organizations, where contracts demand proper liability insurance.
The usual level of general liability insurance for your Commissioned Artists business would be with a cap of $1 million for a single submission and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Commissioned Artists insurance operations.
Professional liability insurance for your Commissioned Artists business
In the event where a client alleges some negligence, errors, or omissions in how you conducted your Commissioned Artists business for them, you can quickly have to fight a monetary claim.
Even if the lawsuit against you is ruled in your favor, the cost of defense can be large, and the impact on your reputation can be damaging.
Every small Commissioned Artists business should have enough professional liability insurance to cover an individual claim of $25,000, with annual cover of $50,000.
See the table in the cost of Commissioned Artists insurance section below for average prices of professional liability insurance for your Commissioned Artists operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that what they received didn’t meet your description of function, or that your recommendation was basically incorrect.
You need to understand the specific laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held culpable for results caused by products claimed to be defective.
To cover yourself against any following lawsuit, you need Product liability insurance for Commissioned Artists
Only you can estimate exactly how much insurance you need.
Best advice is to talk to experienced insurance agents, brokers or company representatives for help.
Commercial vehicle insurance for your Commissioned Artists business
Take care! – almost all policies for private vehicle insurance do not cover any event like theft or accidental damage when the vehicle is being used for business purposes.
The proper way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a direct commercial vehicle insurance package.
Commercial car policies insure the value of any vehicle in case of accident, malicious damage, fire, or theft.
In addition, in case of any accident, the car itself, the content and any legal bills, medical expenses, and property damage is covered if your truck is involved in an accident.
Most states, other than Virginia and New Hampshire, mandate this type of insurance.
The wanted value of the insurance is worked-out for the depreciated value of the vehicle, and your intended level of cover of contents.
Tools and Equipment insurance
Since your Commissioned Artists business needs unique and costly equipment, you know how much it can cost to replace it in case of any damage, loss, or theft.
The equipment may be subject to malicious damage, deliberate fire, theft, other such unpredicted acts.
Also, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can wipe-out your whole business in one stroke.
Unless you can afford to immediately replace such specific gear quickly out of your own pocket, you should have full-level equipment insurance so that you can immediately buy whatever needed to keep your Commissioned Artists business running.
It is impossible to advise how much equipment insurance you need – it’s basically dependent on how much you have invested in your Commissioned Artists business’ equipment.
Commercial Property insurance
Any Commissioned Artists business that owns or rents space in a building needs a commercial property insurance policy.
If you own the space, you certainly have a substantial capital investment, along with a big liability if there’s a mortgage.
Your physical building location must carry insurance coverage for the value of the premises and contents against natural occurrences like fire and storms, and against deliberate damages like theft and vandalism.
In other states like Washington, where unlimited cold snaps can cause damage to outer coverings of Commissioned Artists business premises, there is a need for more extra cover than in warmer climes.
Whereas the level of cover depends completely on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Commissioned Artists insurance section below to give some indication of the average prices per million dollars of property insurance for your Commissioned Artists business.
Temporary insurance by month, week or day for your Commissioned Artists business
Is your Commissioned Artists business working part-time or casually, or is the level of business fluctuating?
Using short-term insurance makes excellent sense. Business insurance by the month, day, or week – temporary insurance for Commissioned Artists – are special policies where you can cover a designated period when you want to be covered.
By only paying for that period of cover, you will save by having reduced premiums but still having identical risk cover.
The essential feature of short-term insurance is that you buy the cover for a defined period – a specific date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of higher business activity, get the existing cover improved.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Commissioned Artists business
You have the chance to combine most of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP integrates commercial property and public liability insurance by incorporating these coverages into one insurance policy, which can save you money.
BOP insurance will shield you if any claims of injury or property damage are made.
It is mostly the right choice for small and medium-sized Commissioned Artists businesses, such as yours.
There are some limits that will dictate whether BOP is suitable for your own business.
BOPs do not cover your professional liability or commercial vehicle policies.
Also, the size of your business will rule whether you are eligible to take out BOP cover.
The normal business that can take out a BOP policy must have fewer than one hundred employees, and under five million dollars in annual revenue.
As well, you must separately take out the necessary worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Commissioned Artists business employees
In many states, it is mandatory to have workers compensation insurance when your Commissioned Artists business has one or more employees.
Workers compensation insurance covers the enterprise against any costs that arise if any hired hand experiences an injury or becomes sick as a result of work.
The benefits provide for medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s laws in this regard can leave you as the employer required to pay penalties levied by the states.
In these states, you cannot take out your workers compensation obligations from private insurance providers.
Workers compensation rates are worked out based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must consult the relevant authorities in your state.
Average costs of these types of insurance
Although every Commissioned Artists insurance level is unique, there are enough examples of standard quotes from insurance companies for us to give appropriate guidelines, including what are the cheapest rates offered.
Of course, you should always check with an insurance representative what’s relevant for your business.
The list below is of annual premiums we have gathered for the main types of insurance your Commissioned Artists businesses needs.
|Types of insurance||Price range|
|Product liability insurance||$346 – $778|
|Public liability insurance||$391 – $795|
|General liability insurance||$722 – $1040|
|Commercial vehicle insurance||$1895 – $2545|
|Equipment insurance||$330 – $1304|
|Commercial insurance||$878 – $2344|
Cost of insurance for your Commissioned Artists operations depends on many different factors.
We have estimated these figures for small self-employed Commissioned Artists businesses.
The location and size and type of your Commissioned Artists business can have a big effect on the cost of different policies.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
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Also you can let the internet do the work for you by searching for insurance companies near where your business is located.
Another good source of information is the local Better Business Bureau in your town.
What is small business insurance for Commissioned Artists operations?
This is an umbrella term used to describe basic insurance policies designed to protect Commissioned Artists business owners from risks like bodily injury, property damage, claims of negligence.
Does my Commissioned Artists business have to have insurance?
Some of the forms of insurance are not mandatory for you to operate your business, but they can protect you from risks in your business operations.
Certain other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Commissioned Artists business insurance policy cover?
Liability insurance provides coverage against lawsuits or claims filed by a customer for bodily injury, property damage, or negligence.
The specific cover will vary based on your own operations.
See the table in the costing section above for average prices of the most common policies for Commissioned Artists insurance.
How much will Commissioned Artists business insurance cost?
As well as the size of the business, several other factors, such as location and claims history, are used to determine your policy’s cost.
You should consult with professional insurance agents and brokers, or insurance company representatives.