As a Web design or graphic designers, you publish high quality designs on a schedule and budget to keep your clients happy - Word of mouth goes a long way, especially in website design. Sometimes the planets do not align during a web project and there are delays, some of which could put your small web design business as risk. Freelancers need to know the risks involved in owning your own small business.
Some people may not even be aware of the risks included in running a website design or graphic design business. The cost of protecting your small business might be a low lower than you think. Lets look over nine reasons that insurance for your business would not only benefit you in case of an accident, but provide peace of mind as well.
- Copyright Infringements - There's a reason this is at the number one spot. Copyright infringement is the most common claims that web designers have. Even if the infringement is unintentional, using an unlicensed (or even an incorrectly licensed version) of images , videos, or any other media, could result in legal action against your firm. Have employees? Make sure they are aware of this as well. One of the best cases on copyright infringement was The Associated Press vs. Fairey, which involved famous street artist Shepard Fairey when he created the iconic image of President Obama's 2008 first run for election.
- Many Companies Require Insurance - Whether you like it or not, many companies require at least $1,000,000 in Commercial General Liability Insurance. This includes personal injury, property damage, medical expenses, completed products, and personal and advertising injury. Getting a policy will not only reassure potential clients that you are indeed a professional, but could save you a large project that needs to be started immediately. If General Liability Insurance seems like overkill, take a look at Errors and Omissions Insurance.
- Errors in website coding - When coding, web designers can put themselves at an extra risk due to the nature of web design. Cyber Insurance exists to protect you against data breaches, you aren't protected even if your client isn't hosting their own website. Losses due to hacking & malware issues are also covered in these events of data breaches.
- Theft of Assets - Chances are: You've been a victim of theft in your life. It could be a disgruntled co-worker, a thief that breaks into your office, or even your friend. Things like servers, desktops, laptops, phones, software, or even your precious stylus, all of these items that play a crucial role in your day-to-day office lifestyle are covered. Protect your tools of the trade, which can cost thousands without proper insurance coverage.
- Allegations of Professional Negligence - If your client doesn't think that your work was up to par, you are legally liable & could face legal action. Professional Indemnity Insurance offers coverage for legal representation & any loss if you are unsuccessful in a court of law. Depending on the evidence that the client has for under-performing contractors, this could be a significant risk for your business to take.
- Unexpected Setbacks - There could be a number of reasons for unexpected setbacks. This could include an error in coding, a visitor getting hurt at your office (such as someone tripping over an unnecessarily loose cable or slipping on a liquid), or if you have a subcontractor performing this work for you & they don't perform their job properly.
- Damage to a client's property - This could be accidentally tipping an asset over, dropping a laptop, causing data loss, causing liquid damage to a device, or basically any time you cause a tangible loss for your client. This could include items at their office & even their IT equipment.
- Home Insurance typically doesn't cover for business activities - In most cases, home insurance simply isn't enough to cover you when you have a home-based business. Be sure that you ask your insurer to make sure you have enough coverage.
Still have questions about how Tech Insurance works? Talk to a TechInsurance agent to make sure your business is covered, or get a free quote instantly.