California Artist Insurance Policy Information
California Artist Insurance. As an artist or craft artist, you love your job. The ability to express your creativity and bring joy to your clients - and the world - is so incredibly rewarding. But, there are a lot of aspects that are related to your business that aren't as enjoyable as the art you create; insurance, for example.
Artists use their imaginations, talents and skills to produce drawings, paintings, statues, sculptures, or other types of artwork on contract or consignment. They often work independently. Completed artwork may be displayed in homes, museums, galleries, offices, restaurants, or other establishments. In addition to their CA studios, artists may have facilities for art classes.
Many artists don't realize that there are a lot of risks that are associated with their work. By carrying the right type of business insurance coverage, you can protect your supplies, projects, staff, clients - and your personal assets - from various liabilities and the financial devastation that could come along with them.
Why is insurance so important for artists and craft artists? What type of insurance do you need? Find out more about California artist insurance for your art-related business below.
California artist insurance protects your art and/or craft business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Why Is Insurance So Important For Artists and Craft Artists?
No matter what type of industry you work in, owning a business is risky. In the middle of painting a client's portrait, a light bulb could explode and rain down on her head. You and your team were hired to build and install a custom piece of furniture, and in the process, the client's property was damaged. A fire could break out in your studio, sending all of your projects and supplies up in flames. Someone could sue you, claiming that the images you took were defamatory. While visiting your gallery, someone could slip and fall on a wet floor.
These are just some of the incidents that could arise, and you would be financially liable for each one. You could be responsible for covering the cost of property damage, medical bills, legal fees, and settlements. Without the right type of California artist insurance coverage, the financial impact could be devastating to your business; your personal assets could be affected, too. Insurance will help to pay for the costs of covered risks, thereby helping you avoid financial devastation.
What Type Of Insurance Coverage Should Artists Carry?
The work that each CA artist does is unique, so are the commercial insurance needs. When it comes to determining what type of California artist insurance coverage you need, there are a variety of factors that need to be taken into consideration; the specific type of art you create, the materials and supplies you work with, whether or not you employ a staff, where your studio is located, etc...
However, there are some key forms of coverage that all CA artists should carry, including:
- Commercial Property - This form of coverage protects the physical property that you use for your art business from certain perils, such as fire, flood, storm damage, vandalism, and theft, for example. It covers both the physical structure of your property, as well as the contents within it. For instance, if a pipe bursts and your studio, canvases, paints, brushes, wood floors, ceiling tiles, and anything else were damaged, instead of having to pay for the damages yourself, your insurance would foot the bill.
- Commercial General Liability - This type of insurance protects you against any third-party injuries or property damage that may arise on your property or as a result of the services that you offer. If you and your crew ever damaged a client's property while installing a work of art or someone slipped on a puddle in your gallery, commercial general liability insurance would cover the cost of the associated damages and medical care. It would also assist with any legal expenses, should a third-party file a lawsuit.
- Workers' Compensation - If you employ a staff or you rely on volunteers, you'll also need to carry workers comp insurance. Should a volunteer or employee sustain an injury or become ill as a result of conditions within the workplace, your workers' comp policy would cover the cost of any necessary medical care. If the individual is unable to work while recovering, it would also partially reimburse missed wages. Should he or she file a lawsuit, workers' comp could also help to pay legal expenses.
These are just some of the types of insurance coverage that artists and craft artists should carry. Other coverage options might include commercial auto, inland marine, and commercial umbrella insurance.
CA Artist's Risks & Exposures
Premises liability exposure may be limited if there is no public access. If clients visit the premises, aisles must have adequate space and be free of debris. Flooring should be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring.
Artist supplies and works in process may present an attractive nuisance to children. Sufficient exits must exist and be well marked, with backup systems in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
Products liability exposure is generally low unless the artist offers restoration services for high-valued pieces. If reproductions are made, they should be clearly marked to avoid disputes such as duplication, copyright, or trademark infringement.
Workers compensation exposures can be heavy due to lifting, falls from awkward positions, being hit by falling artwork, cuts, hernias, sprains, back strains, and foreign objects in the eye. There may be a wide variety of operations and hazards. If work is primarily done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Welding operations can result in burns, damage to eyes, and inhalation of toxic fumes unless protective equipment is provided and there is adequate ventilation. Installing work in museums or other establishments may require the use of ladders or scaffolds. Inhalation of toxic fumes or allergens from paints and other materials can present occupational disease exposure.
Property exposures come primarily from fire as art studios are often full of combustible materials used in the creative process. Flammable paints, etching and finishing compounds, and chemicals used for cleaning must be properly stored, separated, and controlled.
Sculptures may be carved in a traditional manner from wood, stone, or other solid material, or by welding materials together. Welding should be conducted in a separate area away from combustibles. Ceramic artists may have kilns on premises that operate at high temperatures. The kilns may burn continuously and must be monitored to prevent overheating. Operating kilns without adequate ventilation systems can build up flammable vapors and heat that can result in fire or explosion.
Some artwork is extremely fragile and may be damaged by breakage, fire, water, or smoke damage. Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss. Studios may be targeted by thieves. Appropriate security controls should be taken including physical barriers to prevent access to the premises after hours and an alarm system that reports directly to a central station of the police department.
Equipment breakdown exposures are from the breakdown of heating and air-conditioning equipment. Breakdown of climate control systems may cause serious loss, especially to the artwork.
Crime exposures are from employee dishonesty and theft, particularly if the art items have high value. Hazards increase without proper background checks. All billing and disbursements must be handled by separate individuals, inventoried and reconciled on a regular basis. Artwork may be valuable. There should be theft controls, alarms, lighting and physical barriers to prevent access to premises, both at the studio and while off premises.
Inland marine exposures include accounts receivable if the artist offers credit, computer, are for fine arts, and valuable papers and records for customers' and suppliers' information. Some artists exhibit their work only at their studio while others provide artwork for exhibitions or sell through a consignor. Special packaging and handling are required for highly breakable or damageable works while being transported to and from exhibitions or consignment shops. If the artist develops their work entirely on computers, the work could be lost due to mechanical breakdown or hacker activities.
Business auto exposure is generally limited to hired and non-owned liability. If vehicles are supplied to employees, there should be written procedures regarding personal use by employees and their families. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained and records kept in a central location.
Artist & Craft Artist Insurance
To learn more and ensure that your business is properly protected with the right California artist insurance, speak to a reliable insurance broker about your specific needs.
California Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur and you considering having your operations located in California, it's essential that you have a full understanding about the economy of the state, as well as the regulations and limits that are in place for commercial insurance.
If you are considering opening up a business in the Golden State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Trends For Businesses In California
In terms of job creation, the state of California exceeds rate of job growth in the United States; however, as the state's metropolitan areas are reaching employment capacity, job growth is starting to slow. In 2017, the rate of growth was 2.1 percent, which is the slowest rate of growth since 2011; but it is still expected to increase by 1.8 percent by the end of 2018, and 1.2 percent by the end of 2020.
In the month of April, the unemployment rate in California dropped to 4.2 percent, which is a record low. This unemployment rate is expected to remain consistent for the rest of the calendar year; however, it's forecasted that the rate will start to increase in 2020.
The strongest labor market in the state is in the Bay Area, where the unemployment rate was 3.4 percent in 2017. Southern California follows, with an unemployment rate of 4.5 percent in 2017. In the Central Coast region, the rate was 5.4 percent and in the Central Valley, it was 6.6 percent. While the unemployment rate is considered high in these areas, they have decreased dramatically over the last 12 month period.
The industries that are expected to see the most growth in CA include:
- Information Technology
CA Commercial Insurance Regulations And Limits
The California Department of Insurance regulates insurance in the Golden State. In the state of CA, commercial liability insurance is not required; however, since the state does not cap rewards for liability law suits, business owners are wise to invest in this type of coverage. The amount of coverage recommended varies depending on the size of the business and in the industry.
Workers' compensation insurance is the only type of coverage that business owners are required to have. This applies to any organization that employs a salaried or hourly staff, even if that staff only consists of one employee. Furthermore, if an employee is injured or becomes ill as a result of work, business owners must pay for CA workers' comp benefits.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Disc Jockey DJ
- Entertainers And Performers
- Event Planning
- Film Production
- Fine Art
- Interior Decorator
- Interior Design
- Photo Booth
- Wedding And Special Event
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
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