Whenever you budget the expenses of your business, graphic design studios 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 Graphic Design Studios
Get Your Free Quote
With the protection provided by general insurance and all the other sorts 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 graphic design studios enterprise, you must consider how much financial liability you are taking on.
If your graphic design studios business runs without proper insurance, you are taking a tremendous chance not just of losing some money but of a total wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the upshots of their actions.
In this article, we are giving very general guidelines for startup businesses to highlight what the main kinds of insurance that you need are, and where we can, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your graphic design studios business?
What this means, for any graphic design studios business owner, is that if some customer 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 graphic design studios business is not harbored 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 judge 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 person more than they have sort.
When you are running your graphic design studios operations, you can’t avoid responsibility for the results of your actions.
Even more importantly, unless you have spent up-front the money necessary to have your business running as an LLC, all of that liability belongs to you alone.
What does graphic design studios insurance protect you from?
For your graphic design studios business, the most important sorts of insurance are designed to cover the risks to your business from accidents, from unexpected events, and from mistakes.
Also there are some legal kinds of insurance that various states require.
In the next few paragraphs, we will describe the most important points any graphic design studios business owner should remember when negotiating the insurance needed.
The main headings of insurance for your graphic design studios businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any graphic design studios business is dealing directly with other people, and that means you generally have the danger that some accident can happen to them themselves or else something of theirs can be spoiled.
In such a case, they can demand compensation.
General liability insurance policy for your graphic design studios business covers you against claims coming from injury to customers or damage to their property.
It protects your graphic design studios business from the claims themselves and in addition to any associated court costs and legal fees of the lawsuits.
In many cases, it should 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 graphic design studios business would be with a upper limit of $1 million for a single claim 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 graphic design studios insurance operations.
Professional liability insurance for your graphic design studios business
In the event where a buyer alleges some negligence, errors, or omissions in how you conducted your graphic design studios business for them, you can quickly face a law suit.
Even if the case against you is ruled in your favor, the cost of defense can be substantial, and the impact on your reputation can be damaging.
Almost all small graphic design studios 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 graphic design studios insurance section below for average prices of professional liability insurance for your graphic design studios operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that buyers may claim that what they received didn’t meet your description of function, or that your recommendation was basically incorrect.
You need to know the particular laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held responsible for injuries caused by products claimed to be defective.
To cover yourself against any following lawsuit, you need Product liability insurance for graphic design studios
Only you can estimate exactly how much insurance you must have.
Best advice is to consult with experienced insurance agents, brokers or company representatives for support.
Commercial vehicle insurance for your graphic design studios business
Be careful! – almost all policies for private vehicle insurance do not cover any event like theft or accidental damage when the van is being used for business purposes.
The best way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a designated commercial vehicle insurance package.
Commercial truck policies guarantee the value of any vehicle in case of accident, malicious damage, fire, or theft.
Also, in case of any accident, the van itself, the content and any legal bills, medical expenses, and property damage is covered if your car is involved in a crash.
Most states, other than Virginia and New Hampshire, require this type of insurance.
The wanted value of the insurance is worked-out for the depreciated value of the vehicle, and your declared level of cover of contents.
Tools and Equipment insurance
Since your graphic design studios business needs specific and dedicated 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 unforeseen acts.
As well, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can eliminate your whole business in one stroke.
Unless you can afford to immediately replace such specific gear quickly out of your own pocket, you need full-level equipment insurance so that you can immediately buy everything needed to keep your graphic design studios business running.
It is hard to advise how much equipment insurance you need – it’s really dependent on how much you have invested in your graphic design studios business’ equipment.
Commercial Property insurance
Any graphic design studios business that owns or rents space in a building needs a commercial property insurance policy.
If you own the building, you certainly have a substantial capital investment, as well as a big liability if there’s a mortgage.
Any physical building location needs to carry insurance coverage for the value of the premises and contents against accidental occurrences like fire and storms, and against criminal damages like theft and vandalism.
If your graphic design studios business works in areas of high risk, like California or South Carolina, additional coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Illinois, where extreme cold snaps can cause damage to outer coverings of graphic design studios business premises, there is a need for more extra cover than in warmer climes.
Although the level of cover depends mainly 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 graphic design studios insurance section below to give some estimate of the average prices per million dollars of property insurance for your graphic design studios business.
Temporary insurance by month, week or day for your graphic design studios business
Is your graphic design studios business working part-time or casually, or is the level of business fluctuating?
Using short-term insurance makes perfect sense. Business insurance by the month, day, or week – temporary insurance for graphic design studios – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having lower premiums but still having the same risk cover.
The essential feature of short-term insurance is that you pay for 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 better business activity, get the existing cover increased.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your graphic design studios 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 combines 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 frequently the right choice for small and medium-sized graphic design studios businesses, such as yours.
There are some limits that will rule whether BOP is suitable for your own business.
BOPs cannot cover your professional liability or commercial vehicle policies.
Also, the size of your business will determine whether you are permitted to take out BOP cover.
The normal business that can take out a BOP policy must have no more than one hundred employees, and not more than five million dollars in annual sales.
In addition, you must separately take out the necessary worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your graphic design studios business employees
In most states, it is mandatory to have workers compensation insurance when your graphic design studios business has one or more employees.
Workers compensation insurance covers the business 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 requirements in this regard can leave you as the employer having to pay penalties levied by the states.
Some states, such as North Dakota, Ohio, Washington, West Virginia, and Wyoming only allow coverage from the government-run monopoly state funds.
In these states, you cannot get your workers compensation obligations from private insurance providers.
Workers compensation charges are calculated based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must see the relevant authorities in your state.
Average costs of these types of insurance
Although every graphic design studios insurance requirement 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 a broker what’s relevant for your business.
The list below is of annual premiums we have collected for the main types of insurance your graphic design studios businesses needs.
|Types of insurance||Price range|
|Equipment insurance||$375 – $1110|
|Public liability insurance||$310 – $530|
|Product liability insurance||$345 – $735|
|General liability insurance||$760 – $935|
|Commercial vehicle insurance||$1720 – $2930|
|Commercial insurance||$1145 – $2200|
Cost of insurance for your graphic design studios operations depends on many different factors.
We have calculated these figures for small independent graphic design studios businesses.
In larger states like California, premiums are generally about 20%-30% higher than national averages, but in smaller states like Utah, they can be about 20%-30% cheaper.
The location and size and type of your graphic design studios business can have a big effect on the cost of different policies.
You should consult with professional insurance agents and brokers, or insurance company representatives.
What Are You Looking For?
Choose and Get Your Free Quote:👇️
General Liability Insurance ->
Professional Liability ->
Product Liability Insurance ->
Commercial Auto ->
Workers Compensation ->
Commercial Property ->
Other Business Insurance ->
In addition you can let the internet do the work for you by looking for insurance companies near where your business is located.
Another useful source of information is the local Better Business Bureau in your town.
What is small business insurance for graphic design studios operations?
This is a general term used to describe basic insurance policies designed to protect graphic design studios business owners from risks like bodily injury, property damage, claims of negligence.
Does my graphic design studios business have to have insurance?
Some of the kinds of insurance are not mandatory for you to operate your business, but they can protect you from risks in your business operations.
Some other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small graphic design studios business insurance policy cover?
Liability insurance provides protection against lawsuits or claims filed by a customer for bodily injury, property damage, or negligence.
The exact cover will vary based on your own operations.
See the table in the costing section above for average prices of the best policies for graphic design studios insurance.
How much will graphic design studios business insurance cost?
In addition to the size of the business, certain other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
You can search for more information insurance for graphic design studios, in the search box below, and follow the relevant links.