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.
