Around every corner, we see some brand advertisements, billboards, or posters. All these visual strategies have something in common: the use of models. Each brand tries to include a human touch to its brand by using an attractive face (model). These models are used to tempt and attract more consumers to use products. Many of us fall for this beautiful marketing strategy, especially when the models are celebrities. Thus, the modelling industry plays a huge role in brand advertising by using specific models that fit their image.
Although the modelling industry isn’t as beautiful as we imagine, many different parties play a role: from finding models to brands that sign them. One of the most significant players in the industry is modelling agencies. A model agency focuses on finding models, representing them, and finding jobs with brands.
Most brands use modelling agencies to find the perfect model and face for their brand. They are thrilling businesses, but like any other business, there is a range of risks that follows the excitement.
A model agency must be on their toes every second as they never know when a lawsuit is in their future. Clients and models can sue model and talent agencies due to negligence, accidents, or even cyber hacks. The right insurance can reduce the impact of these risks and lawsuits. The article will explain why talent agencies must purchase model agency insurance to help them with these risks.
What is Model Agency Insurance?
A modelling agency insurance is a solution/ package that combines different policies to cover various risks. The insurance solution provides financial and reputation cover when things go wrong.
The insurance includes policies such as professional indemnity, public liability, cyber and personal accident insurance. In addition, insurers can customise the insurance for any type of talent agency and even add more policies to cover a higher range of risks.
A model agency must be prepared for the worst even before it happens, and model agency insurance is that perfect protection.
What is Included in Model Agency Insurance Solution & Why?
Professional Indemnity (PI) Insurance
A modelling agency is liable for many duties to its clients and models. These duties include ensuring their model receives the correct payment, the client gets the right talent and sometimes assisting the model with their accommodation/visa. The agency must be honest and provide the service they promised. Unfortunately, one slip, negligence or breaking the contract can result in large lawsuits.
These lawsuits can come from clients or models themselves. For example, a large number of models sued a wide group of modelling agencies as the agencies were delaying payments, not providing the proper payment and also cutting costs models did not know about. There have also been many more cases where modelling agencies have told their models not to eat or get plastic surgery.
Any of these lawsuits can result in hefty financial and reputation loss. Fortunately, model agency insurance includes professional indemnity (PI) insurance. The policy will cover any form of liability claims due the negligence or error. The insurance will pay for legal and compensation and settlement costs. Such incidents may be due to miscommunication or negligence from certain employees – it would not be fair for the whole model agency to suffer.
Public Liability Insurance
Most modelling agencies work out of an office that includes a photography studio, meeting rooms and more. Therefore, several people come in and out of the agency, including models, photographers, makeup artists, clients and more. The agency as a business is liable for their safety as soon as they step into the work premises. If any members, known as the third party, slip or get injured in the agency location, they will have the right to sue the agency for medical and compensation costs.
For example, if a photographer trips over some loose wiring at the photography studio, resulting in injury and a broken camera. The agency business will have to cover the medical, property damage and possible lawsuit costs. Accidents like this could happen to anyone entering the office.
Thankfully, model agency insurance includes public liability insurance. The insurance will protect the agency if a third party sues the business, alleging the agency’s negligence caused them bodily injury or property damage. Such public liability claims can be unpredictable and happen at any time – hence it’s better to be insured, just in case.
Cyber Insurance
These days, modelling agencies mainly make deals online and store all their data on servers. The data includes model pictures, client information, transaction deals and a lot more sensitive data they must protect. Unfortunately, we live in a generation full of cyber threats – it doesn’t matter what the business does, every business will at some point be a victim of a cyber-attack.
For example, in 2017, the famous modelling agency – United Talent Agency, was the victim of a ransomware attack that disturbed the agency by shutting down email and causing meetings to cancel. They had to pay USD 25,000 to regain control and stop the criminal from sharing data on the dark web.
Cyber-attacks can cause severe reputation damage and financial loss for any business. Hence the modelling agency insurance is combined with cyber insurance. Cyber insurance will cover the agencies’ liability against a cyber-attack, which will include recovering sensitive data, informing the third party, and removing all signs of malware.
Personal Accident Insurance
Modelling agencies mainly work with models, photographers, makeup artists or part-time assistants. These positions in a model agency are roles that only occasionally work with the agency, hence are not full-time employees. (Even a famous model is not considered an agency’s employee). However, the agency is still liable for their safety during shoots and short-term hires.
For example, if a modelling agency has signed a new model and wants to build their portfolio, they might decide on an outdoor shoot. For the shoot, the agency will have to temporally hire a photographer, stylist, makeup artist and assistant. However, if these hires, including the model, are injured during the shoot – the agency will be liable, and the injured may demand medical compensation.
As all these roles are not full-time, mandatory employee compensation insurance will not cover them – if injured. For this reason, the model agency insurance can include personal accident insurance. The insurance works similar to employee compensation and will cover the injured party’s medical and compensation costs. All hires should be covered and protected, whether full-time or temporary, to provide the best care. The insurance may also avoid lawsuits and financial loss during such challenging situations.
Benefits Of Having Model Agency Insurance Solution
Model agency insurance would be the perfect safety net when things go wrong and save a company in many ways.
The insurance will avoid the significant financial loss an agency business would face when dealing with the possible risks. Hence, when dealing with a lawsuit, the company needs to focus on moving forward and getting the best services to defend itself.
Another benefit that aligns with financial protection is peace of mind. When risks and financial costs are covered, it is easier to focus on the business than worry every minute.
The model industry is full of risks, and model agency insurance will be the safety net needed to be protected and succeed.
To Learn More about model agency insurance that can help you avoid agency risks in Hong Kong and Asia, contact Red Asia Insurance.
