A major goal you had after founding your own graphic design agency was to create and publish work for clients that both made them happy and set the bar for graphic and website design. Images define a brand, and in this digital photo-centric age, designing a layout that can compete with image-saturated media is a triumph.
Unfortunately, no matter how hard you try, sometimes your deadlines need to be pushed back. Sometimes your clients want to change direction. Sometimes people take your artwork and use it as their own, getting all the proceeds.
To protect your staff and your business against such situations, you’ll need a small business insurance package.
Here are four reasons why business insurance for graphic designers and agencies is essential.
1. You’re working from a client’s laptop and accidentally spill coffee all over the keyboard
A client meets with you in your office to discuss the design of their company’s new logo. As you go to make an edit on their laptop, your elbow bumps against their tall latte and all over the laptop’s keyboard.
Not to worry, small business general liability insurance covers any damages caused to a third party’s property and will replace said property if it is beyond repair. Though your client will be annoyed at not having a working laptop for about a week, they’ll appreciate that your business is covering the repair costs.
2. A deadline was not met and a client threatens to sue
You signed a contract with your client stipulating that you would have their website redesign completed by a certain date. The date came and went, and three months later the project is still not complete.
Unhappy with your office’s performance, the client wants out of the contract and threatens to take legal action if they are not released from said contract. The contract did stipulate that circumstances could change the product delivery date, giving you a cushion. Sharing this clause of the contract with them you’re told that they’ll see you in court.
Professional liability insurance will cover your company’s legal fees and any restitution fees that may come as result of the lawsuit.
3. Websites designed by your team have been hacked
Your design agency prides itself on its coding capabilities and being able to build and design websites from scratch. You have revamped your company website to nab new clients, but unfortunately for you, a hacker spotted weak code in your website and took it down with a DDoS attack.
A cyber insurance package covers the financial damages caused by the hacker, including liability coverage for stolen data, cyber extortion and business interruption.
4. Another designer accuses you of copyright infringement
You’ve designed a fun little logo for a client that has taken social media by storm, but not because it’s a hit: the logo looks eerily similar to another artist’s work.
You had no intention of stealing another artist’s work and have promised the client a new design, but not before the original artist slapped you with a copyright infringement lawsuit. Small business insurance will pay for litigation and any business disruption your agency may suffer after it’s learned that you “stole” another artist’s work.
As a small business owner, it’s your responsibility to keep things running smoothly. Prepare for bumps in the road with a business insurance policy. Visit CoverHound today for a free quote.