Photographer’s Insurance:
A Review of Photographer Risks and WPPI Package Choice

By Richard Reyes

Photographer’s Insurance: A Review of Photographer Risks and WPPI Package Choice By Richard Reyes of Hill & Usher Insurance It is not uncommon for a professional photographer to operate his or her business without purchasing any kind of written insurance policy. Perhaps the conscientious care you take with cameras and other photographic equipment eliminates any need for insurance protection, especially when paying your annual or monthly premiums is viewed as a direct invasion of your profits.

“I watch my cameras pretty closely because they are my most significant investment,” you might say, adding that you “have been a photographer for many years and have never had any problem.” The truth is, the risks associated with making a living as a paid photographer, whether you operate as a sole proprietor or as a corporation, extend far beyond replacing a stolen camera. As with any commercial enterprise, a photographer encounters significant risks each and every time customers choose his or her services.

Errors & Omissions Liability

We begin with errors & omissions, also called professional liability, because this (often neglected) coverage is becoming more and more necessary for photographers. As the name suggests, errors & omissions insures the photographer in the event he or she commits an “error” or an “omission” while out on a shoot or in the studio. Making a mistake with scheduling, losing or damaging memory cards after completing a job, or even taking “compromising” photographs pose a real danger to your pocketbook, not to mention your hard-earned reputation.

Errors & omissions insurance does not erase a mistake, but it will certainly soothe the anger and disbelief of a customer. In some cases, as in the WPPI Package Choice, errors & omissions coverage will pay to completely re-stage an event, complete with tuxedos and fresh flowers, if necessary. The coverage will protect you in court, paying attorney’s fees and other legal expenses. But, the coverage does not require legal action before you are insured. The aim of the WPPI’s coverage through Hill & Usher is to preserve your reputation and salvage the relationship you have with your client, not just to pay damages when a court rules against you.

General or Business Liability

Many building landlords, popular reception halls, golf courses, and even some churches require photographers to carry adequate limits of general liability insurance. Imagine the problems arising from someone tripping over a chair in your reception area, falling over a loose electrical cord, or colliding with a light stand. These occurrences are certainly accidental and even preventable, but medical payment for the sustained bodily injuries is still your legal responsibility. General liability insurance also pays to replace property you might damage that belongs to your client, the reception hall or another member of the general public. Hired/Non-owned Automobile Liability

If your business is incorporated and you use your own automobile, have employees, or frequently rent automobiles when you travel, this coverage is vitally important. Your employee’s routine trip to the photo lab or the bank could have serious financial repercussions for you and your business if your employee causes an accident with his or her own vehicle. Hired/non-owned automobile liability is an easy addition to your insurance policy, and with a standard limit of $1,000,000, it will go far in protecting you against accident victims seeking “deeper pockets.” This coverage is secondary and in addition to general liability coverage.

Fire Legal Liability

Your high use of electrical cameras and computer equipment poses fire danger to your rented studio building. Fire legal liability insures the portion of the building you rent in the event that you or your equipment starts a fire. Many policies provide limits of $50,000 or $100,000; however, the WPPI Package Choice provides a standard policy limit of $300,000.

Camera/Equipment Insurance/Business Personal Property Coverage

Covering your valuable cameras, lenses, flashes, stands and other related gear often composes the bulk of your insurance policy premium. Your cameras, lenses, studio equipment and business personal property are usually covered on a replacement cost basis. Replacement cost is the amount it would take to replace your equipment with items of the same quality and make, with no deduction made for depreciation. To avoid being underinsured in the case of a total loss, it is strongly advised that you know the total replacement cost value of your equipment and contents used for your photography business. There are resources available online to help determine the value of most cameras, lenses and equipment.

Most insurance agents will place your cameras and lenses on an inland marine or camera floater policy, requiring that you list each item separately. The inland marine policy insures property that is commonly transported and used on location. Most wedding photographers must travel with their equipment and risk damaging or losing their equipment. The WPPI Package Choice policy includes scheduled camera equipment.

Another common property coverage is known as business personal property. This coverage insures the contents that remain inside of your photography studio, such as lighting and background equipment, office telephones, fax machines, desks, chairs and miscellaneous equipment used in your business. Any quality policy will cover your business personal property on a replacement cost value and include coverage for theft. The WPPI Package Choice covers your business personal property at your studio with a sub-limit while it is off premises.

Business Interruption and Extra Expense

This coverage is particularly important for a studio photographer who generates income from a defined physical location. Business interruption coverage pays for the lost income following a loss, like a fire, that prevents the photographer from using the building for a period of time while it is being rebuilt or repaired. Extra expense coverage pays for the additional expenses needed to conduct business temporarily at a different, separate location.

Other Property Coverage

Other important property insurance coverages include valuable papers and records coverage, computer/software insurance, rented and borrowed equipment coverage, and owned building insurance. Most of these coverages can be automatically provided for in the WPPI Package Choice.

Identity Recovery Coverage

Identity theft is one of the fastest-growing crimes in the United States. Identity theft occurs when someone illegally uses your identity to make purchases, commit crimes or receive loans. Victims of identity theft know the impact the crime has on their finances, credit and assets. Some insurance policies, such as the WPPI Package Choice, now include identity recovery coverage. This coverage reimburses sole proprietors and business partners up to a certain limit for identity recovery services.

Workers’ Compensation and Employer’s Liability

Workplace injuries among photographic employees are not as common or severe as they are in other industries; however, workers’ compensation insurance is still a legal requirement even for those engaging in less dangerous occupations—and for good reason. Your employees have a right to paid medical treatment when they are injured, and the employer is liable for payment of medical and wage benefits arising from an injury. You should protect yourself with insurance. The coverage is affordable and makes the studio employee more willing to work.

Workers’ compensation insurance requirements and provisions vary depending upon your state of domicile. Adding this coverage is easy with the WPPI Package Choice.

Automobile Liability

Automobile coverage is vitally important. Many photographers choose to insure their automobiles under a personal insurance policy to avoid the sometimes-high expense of commercial automobile coverage. This approach can pose problems. Personal insurance carriers determine their prices and coverage according to the nature of your vehicle use. Failure to represent commercial use can challenge coverage. You should always indicate to your agent that you do, indeed, drive your automobile for business purposes. You should also carefully choose your limits to include protection for both your personal and business assets.

Commercial automobile policies are beneficial because they are designed for commercial business and provide high limits and often can save premium when multiple vehicles are insured under the policy.

Service

A final word should be said with concern to your agent. Insurance agents specialize in a wide range of risks. Your corner or local agent often has good intentions for you, but he still may not be in a position to offer you sound advice or access to the most suitable coverage. In order to understand firmly what kind of insurance a photographer needs, it takes some understanding of your business.

You probably need not speak to your agent throughout the year, unless you encounter a problem, a claim or the need to make a change to your policy. Make sure you feel comfortable and confident with the agent and insurance carrier so when you do need to speak to someone, you are served promptly and efficiently.

The WPPI Package Choice

The WPPI Package Choice is an insurance product designed for photographers. It includes many of the coverages mentioned in the above article. Some coverages are optional additions. If you would like more information on this program, please see our website at www.packagechoice.com or contact (866) 977-4725.

Richard A. Reyes is senior account executive at Hill & Usher. Richard specializes in arranging insurance coverage for the photographic and video production industries. He may be reached at richardr@hillusher.com or (866) 977-4725, ext 134.