Although the graphic design industry might on the surface seem to carry less legal risk than other professions, many such artistic professionals carry insurance cover. Professional indemnity insurance might not be top of the list when it comes to setting up as an independent graphic designer or forming a company, but it is an important thing to consider in today’s more litigious world. This is where graphic design professional indemnity insurance can come into play.
A designer might be hired to help change a company’s corporate identity with their talents. Should their recommendations and efforts for some reason come hand in hand with a dramatic downturn in a company’s fortunes and profits, a legal action may be on the cards. Of course, this is only one example and an unlikely, if not uncommon, situation.
Professional indemnity insurance will protect a company or a sole trader in connection with any legal liability which arises out of the exercise and conduct of the business. Cover will also usually be provided against loss of or damage to work-related documents, the infringement of any copyright, unintentional defamation, libel and slander, and will also cover against any dishonest actions of any employees.
Even if an allegation levelled against a company or individual is proved to be untrue or invalid, the cost of defending a case can run into thousands or, in a few cases, millions. The amount of legal cost incurred will usually be enough to put many companies into serious financial difficulty. Graphic design professional indemnity insurance is designed to provide peace of mind in the regular running of the business and then provide effective cover and legal representation if it is needed.
Care should be taken in relation to when graphic design professional indemnity insurance policies are ‘active’. For example, only some providers will cover a firm or individual if a legal claim is made in relation to an event which happened before the policy started. The level of cover should be agreed in detail before it is taken out. Likewise, many firms and individuals arrange for cover to continue after they finish trading to give protection for any historical claims, such is the slow nature of some legal issues and processes.