Everyone has some sort of creative talent, whether drawing, photography, painting or even the way one thinks. Even an accountant is innovative in presenting their number in excel. However, only a few people convert this creative talent into their main job and future.
A few decades back, being an artist was not necessarily a popular career and came with a questionable future. But now, artists are everywhere in business, on social media and in many industries. Artists aren’t just people who paint or sculpt crazy art pieces. The term artist has expanded. Graphic designers, photographers, musicians, painters, sculptors, and animators- all fall under the label ‘artists’.
Artists typically work for themselves or art business. For example, a graphic designer could be a freelancer or work for a design business. Either way, they share common risks that can ruin their future and reputation in their industry.
Countless lawsuits, accidents, mistakes or even technology problems can negatively impact an artist. However, there are certain insurance for artists that are crucial and almost a must to deal with these art industry risks.
The article will explain the different insurance for artists and how they will help solve unforeseen problems.
The Main Insurance for Artists
Professional Indemnity Insurance
‘Art is subjective-but at times, art is copied, offensive or inaccurate. There are many times art has offended someone or resulted in error and omission lawsuits. No matter what the art, various claims can affect the professionals. Such as copyright, negligence, offensive and inaccurate work claims. Each of these claims can result in a heft legal bill and reputation damage.
For example, a musician (Joe Satriani) sued the famous music band Coldplay. He claimed their song “Viva La Vida” sounded too much like his “If I Could Fly”. The case was fortunately proven wrong, but the artist still had to pay for legal advice, lawyers and if they lost possible settlement costs.
Such lawsuits could happen to any artist, from similar graphic illustrations to using unlicenced pictures. Hence professional indemnity insurance for artists is a must to protect their liability. The insurance will cover most costs related to liability and negligence claims. PI insurance can be the solution that saves creators or the business’s future career – as mistakes happen.
Public Liability Insurance
Many artists in this generation work with others and use the world to create their art. Such as photographers, sculptures, and painters. When other people or property is involved, there is a risk to their liability and risk to the public (third party). While producing their art, they might accidently injure or damage the public/property. The third-party may take legal action and claim their injury or damage was due to their art activities.
Such cases could happen outdoors, in studios or on clients’ property. For example, a photographer’s tripod seriously damages the flooring of the client or a public area. The property owner may sue the artist or photography business for damages. These lawsuits can be costly due to the legal and compensation cost. The costs all depend on how serious the damage or injury is.
The examples are endless, from one tripping over equipment to paint falling on someone’s property. In such cases, public liability insurance for artists can be a saviour. The insurance protects artists and businesses if a third party sues them, alleging that the art activity caused them bodily injury or property damage. The insurance will cover the legal, medical, repair and any compensation costs related to the claim.
Art and technology integration is growing rapidly. Digital art is as creative as any painting or sculpture (without the mess). Artists use technology to create impressive illustrations, marketing adverts, and NFTs. Likewise, painters and old-school artists are moving to digital art or using websites to promote their creations. However, when any art uses technology, there are cyber risks and the possibility of being hacked.
Cyber-attacks can steal all art data and ask artists to pay a Ransome for their property. For example, Art Basal (a leading platform connecting collectors, galleries, and artists) was a victim of a cyber-attack in 2021. The cybercriminals exposed the personal details of thousands of the art fair’s VIP visitors.
These situations can occur on any art website, server, or personal device. Cyber insurance for artists is essential to help deal with cyber-attacks. The insurance will help the artist or business cover the cost related to the cyber-attack. These costs include expert cyber actions, informing third-party and even cyber police costs. Art and technology are a beautiful combination and must be protected with cyber insurance.
Asset Insurance- Independent Artists
Many artist work for themself as freelancers, which means everything they purchase they have to buy from their income. Freelancing is hard enough when starting, but it can also be costly. Depending on the art style, artists need to own expensive assets, such as cameras, laptops, and additional equipment to assist their art.
Unfortunately, there is always a risk of damaging or losing these objects, which can be too costly to replace instantly. It’s a devastating situation that can ruin a freelance artist’s career and future in the industry. For example, a graphic designer accidentally losses his expensive design tablet and accessory on a bus. The cost of a high-quality tablet plus the equipment can add up to around HKD 10,000 or more.
In such cases, damage or lost equipment means no way to do the art, and no art means no income. To help freelance artists deal with such situations, asset insurance for artists is a must. The insurance will cover the cost of repair or replacement if the art asset is damaged, lost or stolen. The assets could be anything from a technology product to a painting itself.
Property All-Risk Insurance
There are thousands of businesses that focus on creating art and providing creative services to clients. Businesses such as graphic design companies, music production, galleries and more. These businesses have costly equipment and offices that is crucial to their service and business plan. Even though art is everywhere, art businesses own offices and studios that can be damaged due to fires, weather or floods.
For example, an artist owned his studio, which sadly caught fire, and he lost ten years’ worth of work. The artist lost all his work and studio, which was almost impossible to repair due to the costs. A sudden accident like this could happen to any art business or artist.
Hence artists and companies working from a certain location need to purchase property all-risk insurance. Property all-risk insurance is similar to asset insurance but includes property protection for a business. The insurance covers the building, equipment and all other physical assets under business ownership against types of unpredicted events.
Why Is Insurance for Artists and Designers Crucial?
Even though art and insurance do not seem like a typical combination- insurance is crucial in the art industry today. Artists and art businesses must purchase the proper insurance to help deal with their risks.
The appropriate insurance for artists can help reduce unwanted financial loss and help deal with situations they may not have expertise in. Artists should focus on creating their best work and not worry about lawsuits or damage. The range of insurance is essential to deal with all possible risks.
The premium may seem costly for freelance artists today, but it could save thousands of dollars. As one never knows where or when they could have to deal with any legal or harmful situation.
Therefore, insurance allows artists to be free and expressive with no stress.