Michigan Artist Insurance Policy Information
Michigan 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 MI 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 Michigan artist insurance for your art-related business below.
Michigan 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 Michigan 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 MI artist does is unique, so are the commercial insurance needs. When it comes to determining what type of Michigan 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 MI 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.
MI 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 Michigan artist insurance, speak to a reliable insurance broker about your specific needs.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Disc Jockey DJ
- Event Planning
- Film Production
- Interior Decorator
- Interior Design
- Photo Booth
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.
Request a free Michigan Artist insurance quote in Adrian, Allen Park, Allendale, Ann Arbor, Auburn Hills, Battle Creek, Bay City, Berkley, Beverly Hills, Big Rapids, Birmingham, Burton, Cadillac, Clawson, Coldwater, Cutlerville, Dearborn, Dearborn Heights, Detroit, East Grand Rapids, East Lansing, Eastpointe, Escanaba, Farmington, Farmington Hills, Fenton, Ferndale, Flint, Forest Hills, Fraser, Garden City, Grand Haven, Grand Rapids, Grandville, Grosse Pointe Park, Grosse Pointe Woods, Hamtramck, Harper Woods, Haslett, Hazel Park, Highland Park, Holland, Holt, Inkster, Ionia, Jackson, Jenison, Kalamazoo, Kentwood, Lansing, Lincoln Park, Livonia, Madison Heights, Marquette, Melvindale, Midland, Monroe, Mount Clemens, Mount Pleasant, Muskegon, Muskegon Heights, New Baltimore, Niles, Northview, Norton Shores, Novi, Oak Park, Okemos, Owosso, Pontiac, Port Huron, Portage, Riverview, Rochester, Rochester Hills, Romulus, Roseville, Royal Oak, Saginaw, Sault Ste. Marie, South Lyon, Southfield, Southgate, St. Clair Shores, Sterling Heights, Sturgis, Taylor, Traverse City, Trenton, Troy, Walker, Warren, Waverly, Wayne, Westland, Wixom, Woodhaven, Wyandotte, Wyoming, Ypsilanti and all other cities in MI - The Great Lakes State.
Also learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.