p.1 #1 · Insurance Question from Quasi-, Semi-professional
Greetings, FM Community:
I currently have ~$16K of equipment that needs insurance coverage. Photography is not my primary source of income, although I enjoy making a few bucks (less than $1,000/year) here and there through photography, primarily from stock sales and the occasional portrait/senior/wedding gig.
What insurance options do I have? My local (Michigan) quotes for business coverage start $650.00+ a year, which is a bit high considering how little money I make. Scheduling my equipment on my homeowners policy is out of the question, both for the risk and also because it prohibits me from making any income.
p.1 #3 · Insurance Question from Quasi-, Semi-professional
I have a "Personal Property" policy with State Farm along with separate home and auto policies. The "Personal Property" policy covers full replacement cost for the wife's jewelry and for my camera gear. (My camera gear is personally owned, not claimed as business property - like you, I could never earn enough doing what I do to "write it off" anyhow.) On the order of the same amount covered for each of us as you have in your gear. Costs us only about $120 per year. I have made just one claim for an item that "mysteriously disappeared" while travelling outside the country, and received a check for the amount itemized on file, with no struggle or fuss.
p.1 #6 · Insurance Question from Quasi-, Semi-professional
I'm sorry I cant offer any advice, but a MI resident myself, this is relevant to my interests.
Drew, why does scheduling it on homeowners keep you from making income? Curious because I dont know the workings of this kind of stuff. IMO, 650/yr to cover $16k of equipment doesnt sound too bad. Thats considered high?
p.1 #7 · Insurance Question from Quasi-, Semi-professional
The $650 p.a. rate for professional photography insurance is in line with what I pay in Canada; which is $850 p.a. for $50k equipment coverage. This is expensive when you don't make much income from photography, but you have to appreciate that it includes significant coverage for professional liability, as well as (usually) for premises where the business is situated, and for no-fault gear coverage both "at home" and during national and international travel.
OTOH, adding the equipment to a domestic policy only works 'properly' for amateur photographers, as it's only for gear, and does not cover liability associated with what you might do or not do while taking photos, that might cause harm to other people.
The prohibition against making income when gear is insured on a doemstic home policy is probably related to the distinction between amateur and professional. If you're in the middle, you don't fit either model very well. You could consider that your meagre income from photography can at least cover professional insurance, and get appropriate coverage. Have you ever considered what would happen if you dropped a lens on somebody's head from a shooting position above that person? With professional insurance, you'd be covered.
