Ok, I'm going to get full insurance next week and I'm wondering what to get. I know I need liability and gear insurance. But I've seen some photographers getting Error & Omissions Insurance as well. One photographer even said he's had to use it three times! I want to be covered no matter what, but I'm really hoping I never have to use the insurance.
So... any of you been sued? Can you tell why? I imagine this happens more with low-end photographers, but I could be way off base.
Also, let me know the necessary insurance coverage - I am a member of the PPA, so I have the basic indemnification coverage -- obviously I need more.
I'm not sure how much more you actually need.... I'll be interested to hear opinions. Last year, all I carried was the PPA indemnification -- it covers all that I'm most worried about. Checking into it more thoroughly is on my to do list.
Lucky_Dog wrote:
I'm not sure how much more you actually need.... I'll be interested to hear opinions. Last year, all I carried was the PPA indemnification -- it covers all that I'm most worried about. Checking into it more thoroughly is on my to do list.
It's just like most insurance. Many will advise to get everything, while others carry very little. What you use is completely unpredictable and you'll probably never use most (or any) of it. The real question is 'How much is peace of mind worth to you?'
I was just informed that PPA Indemnification is the same as E&O. So I think with a PPA membership, we're both looking at liability and gear insurance.
PPA Indemnification - covers professional liability similar to E&O - if you do something dumb, lose images, etc., you have a $200 deductible and they will hire an attorney to defend you.
Liability - Not to be confused with "professional liability" similar to PPA. This is in case someone trips on a lightstand or falls through a barn roof.
Equipment - covers equipment.
I'm thinking I need Liability and Equipment insurance along with the PPA. Any of you actually have to use this? I'm sure people have had to use the equipment insurance (there's even equip. insurance on steroids if you are pretty risky), but I haven't heard a lot about liability or even indemnification.
Tony Hoffer wrote:
It's just like most insurance. Many will advise to get everything, while others carry very little. What you use is completely unpredictable and you'll probably never use most (or any) of it. The real question is 'How much is peace of mind worth to you?'
That's why I'm getting concerned. I didn't shoot all that much in '08... most of my time was spent setting up my business and meeting with people to book '09. I need to spend some quality time figuring out what is covered, what isn't and what it will cost to get “adequate” coverage. Last year the PPA insurance was fine.
Deb Brundage wrote:
I was just informed that PPA Indemnification is the same as E&O. So I think with a PPA membership, we're both looking at liability and gear insurance.
PPA Indemnification - covers professional liability similar to E&O - if you do something dumb, lose images, etc., you have a $200 deductible and they will hire an attorney to defend you.
Liability - Not to be confused with "professional liability" similar to PPA. This is in case someone trips on a lightstand or falls through a barn roof.
Equipment - covers equipment.
I'm thinking I need Liability and Equipment insurance along with the PPA. Any of you actually have to use this? I'm sure people have had to use the equipment insurance (there's even equip. insurance on steroids if you are pretty risky), but I haven't heard a lot about liability or even indemnification. ...Show more →
This is how I understand it, too. I wasn't too worried about liability as I wasn't even using a light stand most of the time, so unless someone physically trips over me or I fall on someone, I don't see much risk. I figured I could/would shoulder the equipment responsibility.
Lucky_Dog wrote:
This is how I understand it, too. I wasn't too worried about liability as I wasn't even using a light stand most of the time, so unless someone physically trips over me or I fall on someone, I don't see much risk. I figured I could/would shoulder the equipment responsibility.
Yeah -- we technically have enough in our emergency fund to completely replace our equipment. But we also may need to completely replace a car this year, so I think the insurance may be good to have...
Deb, here's the 3 main types of insurance and the reasons you want them:
1 - General Liability - If your presence at a location directly or indirectly causes harm to anyone or anything else, your liability insurance will cover lawsuits, medical bills, etc. A $1M policy is fairly inexpensive (a couple of hundred $$'s) and most venues will require you have at least $1M in coverage. This does not cover gross negligence (to my knowledge) so it always best to err on the side of caution. Without this insurance, should something happen, any lawsuit losses will come directly from your company and if you are a sole prop, out of your personal accounts as well. If you are incorporated, you can limit that damage to the corporation's holdings, as long as you follow the accounting rules and don't co-mingle funds.
2 - Inland Marine (equipment) - Most states do not allow homeowners insurance to cover business related gear, even if it's at your house at the time of theft/vandalism/destruction. The policy follows your equipment and can be either domestic only or domestic and international. As long as you are not negligent, then your policy will cover almost any equipment loss you suffer (Like if my D3 got knocked off a table with my 24-70 attached).
3 - E&O - Errors and omissions covers actual photo losses... corrupt cards, HD failures, theft of images (camera is stolen), images destoyed in a fire, etc. Should a failed HD result in the loss of images, the PPA indemnification trust will pay to have your HD sent to drive savers (the folks who recovered the space shuttle hard drives) to try and recover all the data from it. If that fails, the E&O will also help represent you in court and I've heard they have actually re-staged parts of weddings so they can be re-captured.
Personally, I wouldn't do business without any of these 3. All it takes is one error, accident or mishap to pretty much destroy your business. For both my liability and Inland marine policy, I pay abotu $500 a year. Never had to use it yet but, for peace of mind, it's money I consider very well spent.
Thanks Brian! From what I've heard on the PPA board, the Indemnification will cover lawyer's fees as well, so I'm still on the edge about whether I need E&O as well. But I will do a bit more research. Definitely will get liability and equipment.
Deb - The E&O and Indemnification is pretty much the same thing. If you sign up to PPA as a wedding photographer, then indemnification insurance is mandatory (and only a few more $'s) so you'll be covered. My understanding from the PPA was indemnification really IS e&o, just on a "group" rate.
I got basic business insurance through Zurich. I don't think E&O is in there, but if the gear/card/computer is at fault you're covered. Stupid is as stupid does. You can limit your liability for weddings in your contract - worst case refund their money. I doubt if they bother to sue they'd get much more than that in a court of law anyway - unless you have insurance and they can . But then you might need/want the peace of mind.
Zurichs' insurance also throws in lible coverage, cash on hand and on the way to the bank (you're more likely to be robbed that lose a wedding image), computer/office, studio and camera gear are all seperate things so you get more overall coverage for the same price, business and income interruption coverage and more.
If you hire help then add Workers Comp and consider Discrimination insurance - be that racial or sexual.
Full coverage, always .. our commercial work has a different risk rating than our wedding work but both are combined for every possible loss or liability.
A fair amount of our commercial work finds us in and around water, and often aerials in helicopters, and we have had previous claims. I find it a little expensive at $2600 annually but can sleep nights.
