Professional indemnity insurance for photographers – how much does it cost?
Whether you’re a keen amateur or a professional photographer, you have likely given some thought to photography insurance. While most photographers acknowledge that insurance is essential, there are some aspects of it that are often overlooked.
One such aspect is professional indemnity insurance – but what actually is it, why do you need it, and how much will it cost?
What is professional indemnity insurance?
Professional indemnity insurance has a relatively broad definition, but at its heart, it’s insurance cover that’s designed to compensate your clients in the event that you or an employee of yours makes a mistake or acts negligently.
Naturally, you take great care to be as attentive and professional as possible while doing your photography, whether you do it for clients as paid work or for your own enjoyment. We’re all human, however, and mistakes happen.
That’s why you need professional indemnity insurance cover as a part of your photography insurance package.
What does professional indemnity insurance cover?
Professional indemnity insurance covers a range of things. Broadly speaking, it helps to compensate your client or someone you’ve come into contact with in the event of unprofessional behaviour, negligence or an accident on your part.
Some examples of things it can cover include copyright/intellectual property breaches, a breach of confidentiality or the mishandling of confidential client documents. It can also provide cover if any of the above are committed by an employee of yours, or someone acting on your behalf.
No two professional indemnity insurance packages are the same, so it’s important to make sure you thoroughly read and understand the terms of your contract. You don’t want to wait until you need to claim, only to find out you’re not covered under certain circumstances. If you’re unsure about anything, make sure you ask your insurance provider ahead of time.
How much is professional indemnity insurance going to cost?
There’s no simple answer because as mentioned, no two professional indemnity insurance policies are the same. There are different levels of cover, depending on the maximum payout limit you want to work with and the number of risks you want to cover.
The less your insurance covers, the lower your premiums will be. Be careful though, as this may prove to be a false economy if it turns out you can’t actually claim for what you need to, should the time ever come.
Another consideration with professional indemnity insurance is the type of photography you do.
For example, if you generally work alone in remote areas, you might be considered a much lower risk because there are so few people to risk affecting with a mistake. That means your premiums will be lower.
By comparison, a wedding photographer may have higher premiums due to the nature of scooting a one-off event where the likelihood of a mistake is much higher. Take this into account when determining a comfortable budget to work with.
Also, consider your level of experience. If you’ve been a professional photographer for some years and you have a clean record with no claims against you, you will likely find you get lower premiums than someone who is just getting started.
This shouldn’t put you off from starting a photography business. Just as with driving, the longer you go without making a claim, the less of a risk you’ll present and your premiums should begin to come down over time.
Is professional indemnity insurance worth it?
Yes, absolutely. Remember that compensation for incidents caused by your mistakes or negligence can easily become cripplingly expensive if you have to meet it from your own pocket. In many cases, the legal fees alone are eye-watering. With appropriate professional indemnity insurance, you’ll know you’re covered.
It’s also an investment in yourself, particularly if you’re a professional photographer. In many cases, commercial clients will require some degree of professional indemnity insurance before considering your services. Having the appropriate level of cover will help you to continue growing your business, offering your clients peace of mind.
How much should you pay for professional indemnity insurance?
Cost alone is not enough to determine the cover you choose.
A cheaper package may be lacking in areas of cover that you need, whereas a more expensive cover may not suit your circumstances.
What’s important to think about is value for money. That means how much cover you can get, the advice that comes with it, and the maximum payout, relative to your monthly premiums.
For more help and guidance, or a quote for professional indemnity cover, get in touch with us at Aaduki today.