Graphic Design Business Insurance

Getting business insurance for your graphic design studio is essential.

Operating a graphic design studio entails exposure to various risks that, if realized, could have adverse effects on the business.

For example, a client may take you to court arguing that your design did not meet specifications. In the event that a situation like that or something similar should occur in the future, you can take out insurance now to mitigate the damage.

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 Graphic Design Business

General liability insurance is — generally speaking — one of the most important insurance policies for graphic design studios.

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 wide range of risks, it may not be adequate to cover all of the potential risks that your graphic design studio may face. In order to ensure comprehensive coverage, it may be necessary to obtain specialized policies that are specifically designed to address these unique risks.

These specialized policies may offer additional protection, such as:

Errors and Omissions Insurance: A policy of this kind provides coverage for legal claims related to defamation, copyright infringement, invasion of privacy, and other claims related to intellectual property. It protects the studio against lawsuits related to designs, including allegations that a design infringes the rights of others.
Equipment Insurance: This type of insurance provides coverage for loss or damage to production equipment, such as computers. It can cover a range of incidents, including theft, damage during transport, and accidental damage in the studio.
Business income coverage: This policy will cover the studio for loss of income that results from an adverse event, such as a fire, which causes an interruption of business. It will also cover regular operating expenses, like wages, that must continue to be paid.

While you may have lots of options in the type of insurance available, the choice of insurers is, in general, limited to just two categories:

Traditional brick and mortar insurers: This category includes firms such as Travelers and Chubb that operate at the hub of large costly distribution systems.
Online insurers: However, insurtechs, like Next and Policygenius, have lower overhead costs than traditional insurers, and this translates into lower premiums for customers.

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Cost of General Liability Insurance

On average, graphic design studios in America spend between $300 - $600 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a graphic design 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 Graphic Design Business

Example 1: Your graphic design studio recently received a large piece of printing equipment for which there was no outlet. While waiting on your electrician to install a new outlet, you decide to use an extension cord to power the machine. As a result, a visitor or client of your studio trips over the extension cord and requires medical attention. Your general liability insurance policy may cover any medical expenses and/or lawsuits related to the trip and fall accident.

Example 2: While trying to promote your graphic design business, you accidentally run an ad that misrepresents your services. A client contacts you, wanting the advertised service, and after you explain that the ad was wrong, they decide to sue you for false advertising. Your policy may help cover the costs associated with the false advertising lawsuit.

Example 3: While walking up your entrance stairs, the handrail fails, sending your client tumbling to the ground. This results in numerous scrapes and the need for emergency medical services. Your general liability insurance policy may help cover the costs associated with the emergency transport and treating the injury.

Other Types of Coverage Graphic Design 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:

Commercial Property Insurance

If your graphic design studio is located in a commercial building with a physical address, you’ll need commercial property insurance in order to financially protect your building, property, and equipment from certain covered losses.

Commercial Umbrella Insurance

If you anticipate potential large claims or lawsuits, you’ll want to consider purchasing a commercial umbrella insurance policy. These policies cover claim amounts that are more than the limits of your regular general liability insurance policy.

Professional Liability Insurance

Professional liability insurance protects you against lawsuits stemming from errors in your work, omissions, or acts of negligence.

Workers’ Compensation Insurance

If you employ any graphic designers and other employees at your place of business, you’ll need Workers’ Compensation Insurance, which helps pay for the costs associated with any on-the-job injuries.

Cyber Liability Insurance

Cyber liability insurance protects you in the event that an unauthorized person hacks into your databases and steals information about your clients, business, and/or employees.

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 graphic design 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.

Graphic Design 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.

Generally speaking, yes. It is well-advised to secure business insurance coverage as early as possible. Many of the risks that come with running a business could arise before you even begin trading. Additionally, certain types of insurance are compulsory by law, and should be in place even before your business becomes operational.

Not necessarily. Certain exceptions may be written directly into your graphic design 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.