Casting Agency Business Insurance
Getting insurance for your casting agency is essential.
To ensure the safety and success of casting agencies, it is essential to protect them from the inherent risks of their operations, for which insurance is crucial. By obtaining insurance, businesses can safeguard themselves from property damage and protect against liability for bodily injury or other types of personal harm.
For example, a customer sues you because an actress you referred fails to turn up for her role. Luckily, there is insurance that would cover your legal bills to defend the suit, as well as compensate the customer in the event your legal defense fails.
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 a Casting Agency Business
General liability insurance is — generally speaking — one of the most important insurance policies for casting agencies.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance can cover a broad range of risks, it may not provide coverage for all the potential risks faced by your business. In such cases, you may need to consider obtaining specialized policies that offer coverage for specific types of risks, such as:
- Commercial property coverage: This policy will reimburse you for the cost of replacing damaged property, which could be anything from cash on the premises to fixtures and fittings.
- Commercial auto insurance: This legal requirement serves a useful social function by ensuring that funds are available for repairs and for providing compensation to accident victims.
- Business income coverage: This is coverage that reimburses you for loss of income that results from an interruption of business. If, for example, your business has to shut up shop for a while because some adverse event, such as a fire, has occurred the insurer will cover the loss of income sustained.
When the time comes to purchase insurance, you’ll have to decide whether to go with one of the following types of insurer or the other:
- Traditional brick and mortar insurers: Traditional insurers may not be as data-driven in their approach to underwriting as insurtechs. Traditional insurers also depend on physical locations and agents. This increases overhead expenses which are passed along to business owners in the form of higher premiums.
- Online insurers: Insurtechs, like Corvus and Next, use technology to collect data about customers and their behavior, which helps them create more accurate risk profiles. Reduced overhead allows online insurers to offer lower premiums.
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Cost of General Liability Insurance
On average, casting agencies in America spend between $500 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a casting agency 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.
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Common Situations That General Liability Insurance May Cover for a Casting Agency Business
Example 1: As a potential investor enters your building, he trips on a broken piece of sidewalk in front of your office. He breaks an arm in the resulting fall and decides to sue your company. General liability insurance would pay for your legal defense costs and any required settlement.
Example 2: While visiting your agency to drop off her headshots, an actress slips on a wet spot in your entryway, breaks a wrist, and demands you pay for her medical care. General liability insurance would cover her medical treatment.
Example 3: Another casting agency sues you for libel. While you disagree with the claim, you want to hire an attorney to defend your business. General liability insurance would pay for your legal defense costs.
Other Types of Coverage Casting Agency 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 of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Professional Liability Insurance
If a client accuses you of causing them harm due to errors you made — or they claim you made — in your professional duties, you could face a lawsuit. If someone sues you based on your professional services, professional liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the equipment, supplies, furniture, and real estate needed to establish your agency. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials you store there.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary 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 casting agency 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.
Casting Agency Business Insurance FAQ
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.
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.
"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.
Yes. It is essential to buy business insurance before opening a business. Failing to obtain coverage from the outset could jeopardize your enterprise not only due to unforeseen hazards but also legal violations.
Certain forms of insurance, such as workers' compensation and commercial auto insurance, are mandatory by law. Furthermore, your business may need insurance coverage to safeguard against specific risks, such as property damage and personal injury to customers.
Not necessarily. Certain exceptions may be written directly into your casting agency business insurance policy, and some perils may be entirely uninsurable.
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.