A level of detailed legal protection is often associated with people trading as solicitors or private doctors, as anyone offering professional advice to paying clients can be vulnerable to legal action. Graphic designers fall into this category because they typically deal with published material, which if it contains mistakes can result in a loss of money for a client or worse still that the client finds themselves facing legal action. Graphic design professional insurance is widely available and can protect freelancers and agencies against the threat of court action.
Professional insurance with an element of professional indemnity cover cannot take away a legal claim abut it can pay for the cost of defending a company or individual against it. Many arguments over work can be sorted out amicably without getting legal help involved, but sometimes a dispute can spiral out of control and lead to a formal challenge. In such circumstances somebody will typically need to hire a solicitor to overview their case, and if they are unsuccessful in their defence may even be ordered to pay compensation.
Graphic design professional insurance would typically cover not only the cost of defending the case but also the cost of compensation, subject to certain limits. Upon taking out a policy somebody will normally have to name a payout limit, as insurers will not stump up an unlimited amount of cash towards legal defence and compensation. So smaller firms might want protection for hundreds of thousands of pounds, while larger agencies may want it for millions, depending on their clients.
The premium is then calculated according to the level of cover, although excesses can also be used to influence the cost. Normally a policy protects against allegations of unintentional defamation through libel or slander, unintentional breach of copyright or confidence, and in general the allegation that you have made a mistake, omission, or act of negligence which has cost a client money.
Graphic design professional insurance can even be geared to protect you with ‘runoff cover’, which can be useful in the event you wish to cancel the insurance because you are changing to a new company, retiring, or winding down a business. An individual or firm may still be vulnerable to legal action for a period after they have ceased trading, so an extra time window can be useful to guard against any vulnerable points.
With the proliferation of a more no win no fee compensation culture, professionals delivering advice and consultancy services could quite rightly be more concerned about legal issues. Graphic designers have often turned to professional insurance to guard them against law-related claims, and the right kind of policy is as important as ever. Graphic design professional insurance is a potential safety net against some of the large legal bills which can run up as a result of a dispute or mistake.
A policy which includes a professional indemnity element will pay for legal help should the company or individual ever be accused of making an error, omission, or simply committing an act of negligence in their day to day work. It guards against all sorts of eventualities, such as defamation, allegations of breaches of confidence or copyright, or even the loss or damage of a client’s important documents or data.
To give an example, a graphic design artist might be hired by a company to design a new logo. After the logo is drawn up approved and used on company literature, the designer my face a legal claim rightly or wrongly from someone who feels their copyright has been infringed by the brand’s design. The client may then take action to recover the cost of their fees if they are then contacted by the alleged copyright holder. Graphic design professional insurance with indemnity provision would protect you right the way through this case, paying legal fees while you seek to bring the case to a satisfactory close.
You can even arrange protection which goes on for a period after you have stopped trading or changed jobs, ensuring there are no unexpected and unwanted surprises. This also applies to past events, so you can get protection which is retrospective, protecting against something which happened a long time ago, for which you are only made aware of after you buy your policy.
Graphic design professional insurance will in most cases even payout compensation to a successful claimant, if awarded, and up to certain limits agreed at the start of your policy. Should you need to, you can often even agree an excess on a policy as with a common car insurance policy.
The creative process involved in changing a company’s corporate image, identity, or simply its logo through graphic design is often a rewarding experience. Other professionals in the industry specialise in straightforward leaflets and promotional materials which can provide vital marketing support to businesses. As such, graphic designers can play a vital role in a company’s fortunes. When things go well and clients are happy the job is usually at its most enjoyable. But mistakes do happen and disputes can sometimes turn into legal issues. This is why many people operating in the industry have graphic design professional insurance of some kind or another.
One of the main risks involved in being a graphic designer is the threat of accidentally breaching someone else’s copyright, and professional insurance which includes indemnity cover could help against this. In fact, indemnity protection generally kicks in if someone makes a mistake in the normal conduct of their design work which then follows in a legal claim because someone has lost money or suffered what is known as a financial injury.
The insurance policy will then cover the cost of their legal bills for defending the claim. Such costs can run into thousands of pounds or more depending on the nature of the complaint. If a case is won by the complainant and the court awards damages by way of compensation, then the costs can be even higher. Thankfully graphic design professional insurance which includes professional indemnity cover will even pay this type of cost, up to a certain limit.
As with other types of insurance, most policies will include an excess. This means the policyholder will have to pay any initial legal bills up to a set ceiling. So if a graphic designer faces a claim they have breached copyright, and the legal cost of defending this runs to £4,000 on a policy which has an excess of £600, the policyholder will have to pay the initial £600, with the insurer picking up the remaining £3,400.
Different levels of cover are also available from different insurers, meaning there is a Graphic design professional insurance policy for almost any professional operating in the industry – and cover does not always have to break the bank.