Chapter 1: Small Business Insurance Basics for Photographers and Videographers
Part 1: What Is Small Business Insurance?
Freelance photographers and videographers use small business insurance to safeguard their business assets from future losses. What is a business asset? It's anything that helps your business function and make money. For photographers and videographers, this may include your…
- Studio, car, computer, and other business property.
- Cameras, lights, video, and other kinds of equipment.
- Knowledge, skills, and training.
- Business income.
When one of these business assets is harmed, your business incurs a loss. Freelancers without small business insurance must absorb that loss by themselves. Fortunately, there are a variety of insurance policies available to you that can absorb the impact if you're hit.
Insurance works by shifting the large financial burdens of lawsuits and property damage from you to your insurance provider. To understand how this works, make sure you understand these three concepts:
- Premium. The amount of money your insurance provider charges you for benefits. You may pay this monthly, biannually, or annually, depending on the terms of your policy.
- Deductible. The amount of money you must pay toward a claim before your insurance benefits take effect. Deductibles vary from policy to policy, but usually policies come with a few deductible options.
- Policy Limit. The maximum amount of money your insurance provider can pay toward claims. Most policies have two limits: a per-claim limit and a per-policy limit. The former outlines the maximum an insurer will pay for any one claim; the latter outlines the maximum an insurer will pay in any single policy term.
Freelance photographers and videographers tend to be responsible for some pretty valuable things:
- Thousands of dollars' worth of equipment, often on the go.
- The documentation of clients' major life events.
- The documentation news-worthy events.
- The creation of art (your own or a client's vision).
All of these responsibilities come with hefty doses of risk. What is risk? Read on to find out.
Next: How to Identify the Risks of Your Photography or Videography Business