As a designer, you may think that insurance isn’t something that is relevant to your business. If you don’t usually have customers coming to your offices or you’re not out at events, how is insurance going to benefit your business?
The answer is twofold. Insurance is there to protect both you personally, and your business and business’ reputation. A single lawsuit could mean the end of your business but having decent insurance could mean the difference between survival and bankruptcy.
You may also find that many companies will stipulate that you have a level of insurance before they work with you, this will help to cover you if anything goes wrong, and give them protection should you fall short of their expectations.
Different types of insurance
There are many different scenarios that could arise for a designer or a developer, in which having the right insurance in place would be absolutely vital to the survival of the business.
Broadly speaking, there are two different types of insurance that designers should consider. These are general liability insurance and professional liability insurance.
General liability insurance
General liability insurance is required to protect you from being sued if something were to happen to another person and you were at fault. For example, if you had a potential client come to your office, even if this was something that doesn’t usually happen, and that client injures themselves. Maybe they trip on an uneven floorboard or cut their finger on broken glass, you would be liable for this if they decided to sue you.
Without any form of insurance, it could mean that your own personal possessions, as well as your business’ reputation, are at serious risk. Getting liability insurance from reputable insurance provider will ensure that your business is covered properly and alleviate the worry.
Professional Liability Insurance
Professional liability insurance is the insurance cover that protects you if your work causes problems for a client. Whilst we’d all like to believe that our work is error-free and the best work around, it’s only natural that some work will be handed over containing what we hope are only minor errors that are picked up immediately, but perhaps even bigger errors that are not noticed at all.
Whereas general liability insurances cover physical injury or damage to a person or property, professional liability covers reputational damage. This could come in the form of a financial loss to the client arising from your work or from the advice you may have provided.
Having the correct level of insurance cover in place means your business is covered for every eventuality. Even if you think it could never happen to you, there have been many cases over the years where little companies or individuals find themselves in the middle of a legal minefield for something seemingly innocent. This can be especially scary when you come up against an opponent that is bigger and has more expensive lawyers than you do!