Do web designers need business insurance?
Yes… Because you work hard. You work hard to land clients, win business, and design stunning websites. Should something happen and you don’t have business insurance, not only could your business be at stake, but your personal assets could be, as well.
What kinds of insurance are best for web designers?
Professional liability and general liability are two great places to start. Professional liability is ideal for those who provide expert advice and services, and general liability covers many of the miscellaneous liabilities when it comes to running a business.
Professional liability insurance for web designers
It sounds petty, but professional liability basically exists to protect you from unhappy clients. Seriously. If a client is unhappy with an outcome– even if it’s completely out of your control– they could hold you liable. And if they’re disgruntled enough, they may even file a lawsuit.
Professional liability policies protect you from the following:
- Professional errors: You give your client a poor recommendation, and because of it, they lose money.
- Failure to deliver promised services: You miss the deadline for a site redesign you’ve been working on, pushing back your client’s plans two weeks.
- Negligent services: Your client believes your work fails to meet the industry standard.
- Legal fees and court costs are also covered.
What is general liability insurance?
General liability is pretty straightforward. This policy protects you from general liabilities (risks) that you might face while doing business. This coverage is especially applicable if you tend to meet with clients in person.
- Personal/advertising injury: If you face a claim involving copyright infringement, false advertising, slander, or libel, you’re protected.
- Property damage: You spill your coffee on your client’s display, rendering it useless. General liability will take care of necessary repairs or replacement costs.
- Bodily injury: Someone trips over your laptop charger and sprains their ankle. The medical costs? They’re covered.
- Legal defenses and court costs will also be covered, should you face a lawsuit.
What other types of insurance should web designers consider?
- Business property: Being a web designer means one thing: You work on a computer. To make stuff. For the web. If any of your expensive techy work gear gets damaged, this policy will cover it. Keep in mind: If you work from home, or keep your commercial property at home, don’t rely on your homeowners policy to have your back (it usually only covers up to $500 dollars in business property damages).
- Inland marine: If your commercial property leaves business premises (past 500 feet), your business property insurance coverage will end. Inland marine protects your work gear in transit.
- Business auto: Yup, you guessed it. Business auto insures vehicles owned by your company.
Want more for less?
Get a business owner’s policy, aka a BOP. This package combines general liability and business property insurance. It offers more coverage, at a lower price than purchasing the two policies on their own.
Interested in learning more? Talk to an agent or get a quote.