Illustration Business Insurance
Getting insurance for your illustration business is essential.
Illustration businesses need to be protected against claims arising from things like vehicle employment, personal injury, and breach-of-contract disputes.
For example, one of your suppliers could sue your business for breach of contract, or an employee could be injured at work.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an Illustration Business
General liability insurance is — generally speaking — one of the most important insurance policies for illustration businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
If you’re looking to shore up your illustration business’s coverage beyond what general liability insurance offers, you may want to check out some of the following policies:
- Workers’ compensation insurance: Protects employees who become ill or get injured on the job (e.g., if a driver is involved in an accident).
- Commercial auto insurance: Protects any company vehicles you have if one of them gets into an accident and covers medical and other bills related to any injuries.
- Commercial umbrella insurance: Takes over If you face a claim that exceeds the coverage of your general liability insurance or other policies.
When searching for an insurance provider from which to purchase your illustration business’s coverage, understand the two main types of insurers:
- Brick-and-mortar insurers — This term typically refers to traditional firms, such as The Hartford and Nationwide.
- Online insurers — This term is used to describe younger firms that operate online, which offer a much better value due to their lower operating costs.
Find the Right Policy at the Best Rate
We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.
Cost of General Liability Insurance
On average, illustration businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an illustration business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Start an Online Quote for Insurance
Finding the most affordable premium starts with getting accurate quotes from highly rated providers.
Common Situations That General Liability Insurance May Cover for an Illustration Business
Example 1: You receive notice that one of your completed projects is a close match to another artist’s work, and they are suing you for copyright infringement. General liability insurance should cover the cost of your legal fees, as well as damages awarded to the claimant.
Example 2: At a meeting, you spill coffee on a client’s expensive equipment. They have asked your business to cover the cost to replace the item, along with the cost of lost business while their systems were down. Your general liability policy should cover those expenses and your legal representation costs.
Example 3: You have applied to take part in an art convention. They require evidence of liability insurance. General liability insurance should help fulfill this obligation.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Illustration Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all illustration businesses should obtain:
Commercial Property Insurance
Commercial property insurance protects your investments. This will cover the cost to replace, rebuild, or repair owned business property damaged in a named loss. Because this policy has specific exclusions, business owners who are leasing should review the terms of their lease and work with an insurance professional to identify any other beneficial endorsements.
You can purchase commercial property insurance as part of a business owner’s policy (BOP).
Workers Compensation Insurance
Workers compensation insurance is a required coverage for every business’ employees. If a worker injures themselves conducting business-related activities, the policy would pay a portion of their wages while they are out of work. It will also cover medical bills stemming from the incident. For extensive injuries resulting in lawsuits, a workers compensation policy also ensures the business owner adequate defense in court.
Workers compensation is often purchased as a standalone policy.
Business Interruption insurance
If your business shuts down due to a covered loss, the financial impact could be devastating. Business interruption insurance provides loss of income and fixed expenses during that time. Some carriers also offer extra expense coverage, which would help you set up at a temporary location while you are getting the business back up and running.
Also known as business income insurance, this insurance can come as part of a business owners’ policy (BOP) package.
Data Breach Insurance
If you rely on technology for your business, you will want to consider purchasing data breach insurance. Also known as cyber attack insurance, this policy provides coverage for a liability loss due to a cyber attack, a coverage excluded on a general liability policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your illustration business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Illustration Business Insurance FAQ
Can I buy business insurance online for my illustration business?
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start an illustration business?
Yes. Your illustration business will be exposed to potential financial liabilities from the first day of operation, many of which could be significant. That’s why you need to purchase business insurance beforehand.
Similarly, your illustration business may be legally required to carry policies such as commercial auto insurance or workers’ compensation insurance.
Will insurance protect my illustration business from everything?
Not necessarily. Certain exceptions may be written directly into your illustration business insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.