# Business Insurance?



## KayleighKins (Aug 11, 2010)

How much money do you guys budget toward business insurance a year? I don't plan to open anytime soon, but I am in the planning stages and I want to know the average cost an American pays for business insurance.

I plan to be the sole owner, and I don't plan on having anyone else on the payroll.


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## darin3200 (Aug 12, 2010)

It's usually a few hundred a year. I think mine is around 300 for $10k of coverage and $1m in liability. You'll also want to make sure you get coverage off premises if you travel with your gear a lot because the normal coverage will usually just insure against loss at your place of business.


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## njw1224 (Aug 12, 2010)

It can really range a lot depending on what you insure. Will you have a separate studio building (not in your house)? Do you own or rent this studio space. If you own it, you will have to insure the structure. Is it in a flood zone? If so, flood insurance may be needed separate from your normal policy. How much equipment do you have? That will affect the amount of coverage you'll need for equipment. The few hundred dollars quoted above is probably for an in-home studio. I have my own studio building in a flood zone and it costs me about $1200 per year for general insurance (building, equipment, liability), then another $550 for flood insurance. That may seem like a lot, but just a week ago a storm came through and blew an awning off the studio, which then took out a railing. It also blew glass out of two windows. The insurance company sent me a check for $7000 without question. So this one claim covered my last four years of insurance premium payments. Insurance always seems like an expensive waste of money - until you need it.


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## Big Mike (Aug 12, 2010)

Look into joining a pro photographer organization...something like PPA or WPJA.  They often have an existing plan/relationship with an insurance company.  This can save you a lot of money and also help you to get a policy that is optimized for photographers.

Many people say that the savings on insurance are more than enough to pay for the membership dues.


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## KayleighKins (Aug 12, 2010)

njw1224 said:


> It can really range a lot depending on what you insure. Will you have a separate studio building (not in your house)? Do you own or rent this studio space.



Naw, what I'm planning right now is not to have a studio, then when I can afford it I'll start renting a home with an extra room where the studio can be. I live in Florida, so it's a good point to assume that I'll have renter or hurricane insurance, which would hopefully cover flooding and damage. I do know that hurricane insurance tends to be very high, the average being $1,000.


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## NotTheBrightest (Aug 15, 2010)

I am also opening up a new photography studio and was wondering about what the average cost of business insurance would be.  I first read here (How much do you pay for business insurance for a photography studio? | Insure Answers)  that the cost could be as low as 300 dollars, but is there a specific insurance company that you would recommend as being cheaper or, perhaps, even more understanding and favorable to business owners in our industry?  Does the equipment you're using matter, and do you really need at least 1 million in liability?


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## KmH (Aug 15, 2010)

KayleighKins said:


> Naw, what I'm planning right now is not to have a studio, then when I can afford it I'll start renting a home with an extra room where the studio can be. I live in Florida, so it's a good point to assume that I'll have renter or hurricane insurance, which would hopefully cover flooding and damage. I do know that hurricane insurance tends to be very high, the average being $1,000.


Renters insurance won't cover a business.

Once you start making money with your photography gear you'll need an Inland Marine policy/rider to cover it, as personal type insurance, like renters insurance, won't.

You really should be checking with a qualified insurance underwriter.


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## KayleighKins (Aug 18, 2010)

KmH said:


> Renters insurance won't cover a business.
> 
> Once you start making money with your photography gear you'll need an Inland Marine policy/rider to cover it, as personal type insurance, like renters insurance, won't.
> 
> You really should be checking with a qualified insurance underwriter.



Sorry I wasn't clear, I plan to add the renter and the business insurance together, to get a figure like $1,300. I do plan to talk to someone when this is out of the planning stages and I have enough money to think about undertaking it


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## KmH (Aug 18, 2010)

KayleighKins said:


> ...I do plan to talk to someone when this is out of the planning stages...


I was suggesting, the planning stage* is* the best time to consult with an expert.


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## JamesMason (Aug 18, 2010)

in the uk i pay £67 a year for 1 million of public liability and £27 a month for my kit


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## darin3200 (Aug 18, 2010)

KayleighKins said:


> KmH said:
> 
> 
> > Renters insurance won't cover a business.
> ...




Just something to consider about this, when I was researching I heard of people putting their equipment along with their homeowners and if they filed too many claims they got dropped from both, so they had find new policies.


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## darin3200 (Aug 18, 2010)

NotTheBrightest said:


> I am also opening up a new photography studio and was wondering about what the average cost of business insurance would be.  I first read here (How much do you pay for business insurance for a photography studio? | Insure Answers)  that the cost could be as low as 300 dollars, but is there a specific insurance company that you would recommend as being cheaper or, perhaps, even more understanding and favorable to business owners in our industry?  Does the equipment you're using matter, and do you really need at least 1 million in liability?



Just call a bunch of big places and get some quotes. Equipment shouldn't affect the quote, you're just insuring against the cost of getting it replaced. I think $1m tends to be the standard base rate. It doesn't really add a ton to the overall premium though.


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## Robert Pope (Nov 16, 2010)

Joining a professional group (PPA, etc.) is a good start. With PPA you get the great indemnity protection (worth the $300 dues itself) and you get access to their rates with Marsh.

Just liabilty will run you $300+. Camera insurance can be at least another $300 but more likely $700-$1,000.

As has been pointed out, homeowners or renters will not cover anything as soon as they discover you're a pro. They make it clear they do NOT cover professionals.

Again, PPA is worth it just for the indemnity protection.


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