Key Takeaways
- General liability insurance protects against lawsuits from injuries on your property or copyright claims.
- Professional liability (E&O) covers legal costs and damages if sued over errors in your work.
- Equipment insurance replaces cameras, instruments, computers if damaged or stolen.
- Property insurance reimburses losses from fire, theft or water damage.
- Workers’ comp pays employee medical bills and lost wages from job injuries.
Introduction
As an independent creative professional like an artist, writer or performer, business insurance is crucial to protect your livelihood. Various policies can safeguard you from both unexpected accidents and litigation risks inherent in creative fields. This guide outlines the top insurances for freelancers and solo businesses in NAICS code 7115 to consider.
General Liability Insurance
General liability insurance is an important coverage for independent artists, writers, and performers to protect their business and personal assets from costs and lawsuits that may arise from claims by others related to their operations. Some key uses of general liability insurance for those in the NAICS Code 7115 industry include protection against bodily injury or property damage claims from events at artistic venues or performances, defense against claims of copyright or intellectual property infringement from use of others’ works, and coverage for damage or injury from exhibits, displays, or performances. The average estimated annual cost for general liability insurance for businesses in this industry is around $1000.
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| Benefits |
- Protects your business from lawsuits filed by third parties for bodily injury or property damage claims related to your operations
- Covers your business if a customer, client, or attendee trips and falls or is injured by equipment at your space
- Provides coverage if your artwork, writing, performance or intellectual property inadvertently infringes on someone else’s copyright or other legal rights
- Covers legal defense costs if you are sued
- Covers incidental medical payments for injuries that occur on your premises
- Covers liability claims that may arise from contracting with independent contractors or freelancers working with your business
- Provides positive PR and reassurance to customers and clients knowing your business is responsible and protected
- Protects your personal assets from lawsuits and claims against your business
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| Use Cases |
- Protection against bodily injury or property damage claims from events like slip and falls at artistic venues or performances
- Defense against claims of copyright or intellectual property infringement from use of others’ works
- Coverage for damage or injury from exhibits, displays, or performances
- Protection if an employee or contractor is injured on the job
- Liability coverage for artistic consultations or advice that leads to claims
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Based on typical pricing structures for general liability insurance and risk profiles of businesses in the NAICS Code 7115 industry (Independent Artists, Writers, and Performers), the estimated average annual pricing would be around $1000. This price was derived from looking at average premiums companies in this industry pay which falls between $800-1200 per year depending on coverage amounts and business details like employee count, annual revenues, types of artistic services provided etc.
Estimated Pricing: $1000
Professional Liability Insurance
“Professional liability insurance, also known as errors and omissions insurance, protects independent artists, writers, and performers from financial losses that can occur when they are sued for claims related to their work. It helps defend against complaints and pay for resulting damages. Professional liability insurance provides key benefits like protecting personal assets, allowing access to loans, preventing loss of income if sued, and covering legal fees and damages if found liable.”
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| Benefits |
- Protects against lawsuits from clients if your work causes financial losses or damages to their reputation
- Covers legal fees and expenses if you are sued for allegations like copyright infringement, plagiarism, or errors and omissions
- Pays damages if you are found legally liable for losses resulting from your work
- Provides access to risk management and legal support services to help prevent claims
- Protects personal assets like your home and retirement savings from being seized if claims exceed your policy limits
- Allows you to more easily obtain loans and lines of credit by demonstrating you have adequate liability protection in place
- Prevents loss of income if you are sued and must stop working on certain projects to defend yourself in court
- Gives you peace of mind knowing you have coverage in place in case the unexpected occurs
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| Use Cases |
- Coverage for errors and omissions if the artist/writer/performer fails to meet the standard of care expected from their industry peers
- Protection against liability claims if the artist/writer/performer’s work results in damage to a client’s property
- Defense against lawsuits if the artist/writer/performer’s work infringes on someone else’s copyright or other intellectual property rights
- Pay for legal fees and damages if the artist/writer/performer is sued for plagiarism, libel, or violation of a person’s right to privacy or publicity
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Based on industry analysis, the average pricing for professional liability insurance for businesses in the NAICS 7115 industry is around $1,000 per year. Pricing is usually determined based on the annual revenue of the business. For businesses with annual revenue under $100,000, pricing is typically $1,000 per year. Pricing may be higher for businesses with higher annual revenue.
Estimated Pricing: $1,000
Equipment Insurance
Equipment insurance is an important consideration for independent artists, writers, and performers who rely on expensive specialized equipment for their work. Without coverage to protect against damage, theft, or accidental loss, replacing valuable gear could be financially devastating and prevent creatives from earning income if equipment is harmed. Top benefits of equipment insurance include protecting equipment from damage or theft, covering gear used for work even if damaged during transportation or events, replacing equipment if destroyed, and providing income replacement if unable to work due to lost equipment. Common use cases where insurance would apply include damage to musical instruments, camera gear, computer equipment, and electronics used by creatives in their work. Rates for equipment insurance average around $350 annually based on $10,000 of coverage.
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- Protects against damage, theft or loss of expensive equipment like cameras, musical instruments, computers
- Covers equipment used for work even if damaged during transportation or on location
- Replaces equipment if it’s destroyed in events like fire, flooding or accidents
- Covers equipment temporarily stored in vehicles, practice spaces, studios or home offices
- Covers equipment rented or borrowed for projects
- Provides income replacement if you’re unable to work due to lost or damaged equipment
- Offers peace of mind knowing your equipment is protected
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| Use Cases |
- Damage or theft of musical instruments like guitars, drums, and other valuable equipment used by musicians
- Damage or theft of camera equipment used by photographers
- Damage or theft of computer equipment used by writers, designers, and other creative professionals
- Damage to equipment during transportation or during a performance or event
- Damage or loss of electronics like tablets, laptops, or projection equipment used for presentations or events
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Based on typical coverage amounts and premium rates, the estimated average annual price for equipment insurance for businesses in NAICS code 7115 (Independent Artists, Writers, and Performers) would be around $350. This estimate assumes $10,000 of equipment coverage with a $1,000 deductible. Rates in this industry typically range from $3-$5 per $100 of coverage.
Estimated Pricing: $350
Business Property Insurance
“Business property insurance provides important financial protection for independent artists, writers, and performers. It covers expenses from damage or theft of expensive equipment essential to their creative work. The typical premiums also help these small businesses budget for this essential overhead cost.”
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- Protection against damage or theft of expensive equipment
- Reimbursement for lost income if equipment is damaged and you have to close your studio/office
- Peace of mind knowing your assets are covered
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| Use Cases |
- Protection against damage or theft of equipment like musical instruments, photography gear, computers and other devices
- Coverage for damage or loss to artwork, manuscripts, writings or other creative works
- Reimbursement for damage to the building or office space for an independent studio or workspace
- Replacement costs for office furniture, studio equipment or other business property damaged in a fire, flood or other disaster
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Based on research, the average annual cost for business property insurance for businesses in the NAICS 7115 industry is around $500-800. This pricing is derived based on typical property values of artistic equipment, computers, furniture etc. for these types of small independent creative businesses working from home or small office spaces.
Estimated Pricing: $500-800
Workers Compensation Insurance
Workers compensation insurance provides crucial benefits and financial protection for businesses and employees in the independent artists, writers, and performers industry. It pays for medical expenses and lost wages if workers get injured or sick on the job, helping both the worker and employer through difficult times. Due to the unpredictable nature of work in this industry, insurance is especially important to have in place to cover costs from unexpected accidents and injuries during performances, on sets or in creative workspaces. It also protects employers from expensive lawsuit costs if an employee is injured on the job.
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- Pays medical costs if an employee gets injured or sick on the job
- Covers lost wages if an employee cannot work due to a job-related injury or illness
- Protects the business from lawsuits related to job-related injuries or illnesses
- Provides rehabilitation services to help injured employees return to work
- Covers disability or death benefits for serious injuries
- Reduces overall liability costs for the business
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| Use Cases |
- Cover medical expenses and lost wages for artists, writers, or performers who are injured on the job
- Pay benefits to employees who suffer from work-related illnesses or diseases
- Cover liability if an employee is injured by or due to an employer’s negligence
- Protect employers from expensive lawsuit costs if an employee sues for damages from a work-related injury
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Based on national average rates, businesses in NAICS 7115 industry (Independent Artists, Writers, and Performers) will typically pay around $1.50 to $2.50 per $100 of payroll for workers compensation insurance. Rates are dependent on factors like number of employees, type of work/risks involved, company safety programs/record, etc. For an independent artist or writer with 2 part-time employees and $50,000 annual payroll, estimated annual workers comp insurance cost would be approximately $750-$1,250.
Estimated Pricing: $750-$1,250
Cyber Liability Insurance
Cyber liability insurance provides important protections for independent artists, writers, and performers. As creators and small business owners, they face risks related to data security breaches, systems failures, copyright claims and lost income if incidents disrupt their work. Having the right insurance can help cover costs and legal fees from many cyber-related issues they may encounter. Some key benefits of cyber liability insurance for those in this industry include covering notification costs, credit monitoring, investigations and PR from data breaches, as well as legal defense if accused of copyright infringement. It also protects income if systems go down, and restores lost data. Typical use cases it covers are breaches exposing customer information, lawsuits from failures, network damages, ransomware infections interrupting business and recovery of lost earnings while restoring IT or data. Average annual premiums tend to fall between $500-$800 depending on revenue and number of employees or contractors.
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- Covers costs of a data breach including notification, credit monitoring, forensics investigation and public relations
- Covers lawsuits and legal fees in the event of a data breach caused by your business
- Covers costs to restore lost or corrupted data
- Covers business interruption costs if your systems are down due to a cyber incident
- Covers defense costs if your business is accused of copyright infringement, plagiarism or illegal use of music, images, video or text
- Covers loss of income or earning capacity if your website goes down due to a cyber attack
- Provides access to legal advice and experts in the event of a cyber incident
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| Use Cases |
- Data breach or cyber attack leading to liability for stolen or lost customer data
- Lawsuits from customers due to a security breach or failure
- Network security failures leading to system damage
- Ransomware infections or other cyber incidents causing business interruption
- Liability for copyright infringement, defamation, or other media/content-related risks
- Recovery of business income lost during restoration of IT systems or data following a breach
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Based on typical pricing models and risk assessments for businesses in the NAICS 7115 industry, the estimated average annual premium for a basic cyber liability insurance policy would be around $500-800. Premiums are usually calculated based on revenue/income levels and number of employees or contractors. For most small independent creative businesses and sole proprietorships in this industry, premiums tend to fall on the lower end of this range.
Estimated Pricing: $500-800
Conclusion
By making informed choices about liability, equipment, property and other coverage policies tailored for your specific needs, you can feel secure focusing on your artistic vision without undue worries. The right insurance portfolio gives creative entrepreneurs financial peace of mind.
Frequently Asked Questions
some of the most important types of business insurance for independent artists, writers, and performers include general liability insurance, professional liability or errors and omissions insurance, equipment insurance, business property insurance, and workers’ compensation insurance.
general liability insurance protects independent artists, writers, and performers from lawsuits filed by third parties for bodily injury, property damage, copyright infringement, and other claims related to their business operations.
professional liability insurance, also known as errors and omissions insurance, protects independent artists, writers, and performers from lawsuits and claims related to failures or errors in their work. it covers legal fees and damages if they are found liable for losses resulting from their work.
equipment insurance protects valuable equipment like cameras, musical instruments, computers that independent artists, writers, and performers rely on for their work. it covers damage, theft, loss or accidental damage to equipment.
business property insurance protects assets like office furniture, artwork, manuscripts, and property from damage, destruction or theft due to incidents like fire, flooding or other disasters.
workers compensation insurance pays medical expenses and lost wages for employees injured on the job and provides disability or death benefits for serious injuries. it also protects employers from expensive lawsuits related to work injuries.
estimated average annual cost for general liability insurance is around $1000 for most independent artists, writers, and performers based on typical coverage amounts and risk profiles.
estimated average annual cost for professional liability insurance, also known as errors and omissions insurance, is around $1000 for most independent artists, writers, and performers.
estimated average annual cost for equipment insurance providing $10,000 of coverage is around $350 for most independent artists, writers, and performers.
estimated average annual cost for business property insurance is $500-800 for most independent artists, writers, and performers.
estimated annual cost for workers compensation insurance ranges from $750-$1250 for most independent artists, writers, and performers based on factors like payroll and number of employees.
cyber liability insurance protects independent artists, writers, and performers from risks and costs related to data breaches, privacy violations, network security failures, ransomware infections, and other cyber incidents. it covers notification costs, legal fees, lost income, and more from many types of cyber incidents.
while insurance is not legally required, it is strongly recommended for independent artists, writers, and performers to protect their business from risks like lawsuits, equipment damage/theft, and provide benefits like lost wages coverage.
consider coverage amounts, deductibles, premium costs, service reputation, and ensure the policy meets your specific business needs when selecting insurance providers and policies.
most business insurance policies need to be renewed annually. review your policies, business needs, and market rates each year to ensure continued protection.
check your individual policy details, but some policies may cover equipment, supplies or artworks damaged during projects as part of property or equipment coverage depending on the specific circumstances.
