business insurance needs for creatives 3 12 2011
TRANSCRIPT
Business Insurance for CreativesChris Johnson
March 12, 2011
Business v. Personal Insurance
• Business / Commercial Insurance
– Protects your source of income from unexpected or uncontrollable events
– Artists are self-employed / business owners
• Personal Insurance
– Protects the health and well being of you and your family
– Includes Life and Health insurance
Business v. Personal Insurance
• Business / Commercial Insurance
– Protects your source of income from unexpected or uncontrollable events
– Artists are self-employed / business owners
• Personal Insurance
– Protects the health and well being of you and your family
– Includes Life and Health insurance
Business Insurance for Creatives
• What is insurance?
• Why do creatives need insurance?
• What types of business insurance are relevant to artists and arts organizations?
• Can I afford insurance?
• How do I get started?
What is Insurance?
• Form of risk transfer
• Insured assumes small known loss in exchange for promised compensation in the case of a larger uncontrollable loss
• The opposite of playing the lottery
Why do Creatives Need Insurance?
Why do Creatives Need Insurance?
Why do Creatives Need Insurance?
What Types of Insurance are Relevant?
• Property Insurance
• Business Income Interruption
• Commercial General Liability
• Commercial Auto
• Professional Liability (Errors & Omissions)– Film Production, Photographers
• Workers Comp (organizations)
• Directors & Officers Liability (organizations)
Property Insurance
• Insurance for stuff that isn’t moved– Buildings
– Furniture
– Office Equipment
• Insurance for stuff that is moved (floaters)– Musical Instruments
– Camera Equipment
– Artworks
– Props & Costumes
Business Income Interruption
• If your place of business (studio, theatre, gallery…) is unusable for a time, would you have an income?
• If your cameras/instruments/props are stolen, could you pay the bills until they are replaced?
Commercial General Liability
• Claims relating to physical injury to others, or damage to their property
– Billy Elliot audience and the crate
– Dennis Kucinich and the olive
– Paint store and the bear hug
– Deli and the Chevrolet
Commercial Auto
• Similar to Personal Auto
• Coverage for owned, rented or borrowed vehicles
– Injury or damage to others
– Damage to vehicle itself
Professional Liability
• Also called Errors & Omissions
• Malpractice Insurance for Doctors is a commonly known example
• Coverage for Errors in Work Product
– Film that is too similar to another
– Wedding photographer missing a wedding
Workers Comp
• Coverage for employees work related injuries and diseases
• Required by law for employers
• ‘Free Lancers’ sometimes meet the definition of employees for Workers Comp
• Example claims: see “Spider-Man: Turn Off the Dark”
Directors & Officers Liability
• Coverage for board members of non-profits
• Claims arising from errors in judgment, breaches of duty, and wrongful acts
• Sometimes requested by high profile potential board members
Can I Afford Insurance?
• Monoline (à la carte) Policies can satisfy some very specific needs
• Package (prix fixe) Policies are usually the best deal– Business Owner’s Policy (BOP)
• Short-Term Policies are available for some projects
• Most major insurers accept payments
• Most major insurers accept credit cards
Can I Afford Insurance?
‘Buy as much insurance as you can afford—some is better than none.’
How Do I Get Started?
• Ask your colleagues
• Ask your local art group or association
• Look for an independent agent on-line
