Insurance explained
The ins and outs of insurance for Interior Stylists
Oh my goodness! What a minefield insurance is with public liability, indemnity and copyright laws being banded about it’s no wonder most of us run to the nearest prop house and bury our heads in the sand! What we need is a clear and concise explanation in ‘interiors talk’ so we know what we need and where to get it. Now we’re no experts but we’ve done our research (and you should always contact a professional for real advice) but for a quick explanation here you go…..
Professional Indemnity Insurance
What is it? Why do I need it?
Professional Indemnity Insurance is for when a client thinks you’ve done something wrong. It covers the cost of compensation if your professional advice has caused clients to lose money or if you’re deemed to have provided inadequate services or designs. This includes things like breaching confidentiality, infringing copyright, or giving advice that causes your client to lose money.
So, if you do a photoshoot and the PR is happy but the brand isn’t and won’t pay – you’re covered. Or if you do a photo shoot for a high street brand and use a piece of designer art and the image is used in an advert. The artist may sue for copyright infringement. You would be covered for the legal costs for that too.
Public Liability Insurance
What is it? Why do I need it?
In the most basic terms Public liability insurance covers you against accidents to a person/ people or a building.
Public liability is insurance that will cover the cost of claims made against you by members of the public for incidents that occur in connection with your business/work. So if you leave a ladder outside a venue – mid bunting hanging, and a member of the public trips up, breaks their leg and decides to sue you, you’re covered. Or your assistant gets a bit energetic sweeping up at the end of a shoot and knocks a window out in the process – you’re covered for that too!
By ‘public’ what the insurance companies really mean is anyone not an employee.
Public liability insurance usually covers the cost of compensation for:
- personal injuries
- loss of or damage to property
- death
Policies vary from insurer to insurer, but most public liability policies cover you for:
- incidents that occur on your business premises
- incidents that take place off-site, at events or activities organised by your company
- legal costs involved in pursuing or defending claims.
Employers Liability insurance
What is it? Why do I need it? And why is this one of the biggies that all stylists should have?
Employers liability insurance will help you to pay compensation if an employee is injured or becomes ill due to any work they have done for you.
You need to have Employers liability insurance if you employ someone and that includes even if you are an interior stylist who hires an assistant to help you out on a shoot just for one day. Even if you are not paying them and you’re hiring them on behalf of a client you are still responsible for their safety and for that you need employers liability insurance.
Why do I need it
You can be fined £2,500 every day if caught not having the correct insurance. You can also be fined £1,000 if you can’t show an inspector proof of that insurance! We’re not saying that will happen – and in reality it’s unlikely in our line of work but it’s out there so I’m sharing it.
What do I need?
- Any employers liability insurance should cover you for
all permanent employees - contract, casual and seasonal employees (that’s assistants to you and me!)
- temporary staff including students and work experience
- volunteers
By law you need to have cover for compensation of at least £5 million, but most policies offer cover for at least £10 million.
As with most insurances, the cost of your cover is based on a number of factors including:
- the nature of your business
- the number of people you employ
- your previous insurance claims history
So, there you have it. Insurance in a sweet little nutshell. Does that clear things up? Are you off to find a broker? We strongly suggest you do.
Good luck and stay covered!
Special thanks to Williamson Carson for advising on this feature. If you want an insurance broker who understands what interior stylists and photographers do and will explain everything so you understand, these are your guys.
Visit their website williamsoncarson.co.uk or call them on 020 8659 5038
Useful Websites
For lots of detailed information about insurance visit the following websites
- ABI: Association of British Insurers
020 7600 3333
www.ABI.org.uk - HMRC
www.gov.uk - British Insurance Brokers’ Association (BIBA)
0901 814 0015
www.biba.org.uk - Business Link
0845 600 9006
www.businesslink.gov.uk - Federation of Small Businesses (FSB)
01253 336 000
www.fsb.org.uk - Financial Ombudsman Service (FOS)
0845 080 1800
www.financial-ombudsman.org.uk - Financial Services Authority (FSA)
0845 606 1234
www.fsa.gov.uk
