There’s a lot of myths circling the internet about insurance, and a lot of people still believe them. The problem is a lot of these ideas come from people who want to avoid paying for insurance or think they can handle any claims on their own.
However, your craft deserves to be protected. Whether it’s your profession or a hobby you are passionate about, you put a lot of effort into what you do. With artists and crafters insurance, you can protect your artwork the same way you protect your house, your car, and even your health.
Today ACT is revealing the truth behind three common myths we often hear about artist and crafter insurance.
Myth: Adding a disclaimer to a product I sell will keep me from getting sued.
Truth: The only thing that can help you pay for a product liability claim is insurance.
The reality is there is nothing that can completely protect you from ever getting sued. With more than 40 million lawsuits filed each year, and the number of lawyers steadily increasing year over year, our society loves the courtroom.
A disclaimer is a lawyer’s playground, and chances are they will still find a gray area where your client can demand compensation.
While you can’t completely prevent a lawsuit, you can control how you pay for one. Your disclaimer offers no financial repayment, but an insurance policy can.
ACT Insurance’s annual policy is designed to help you pay for product liability claims and help you keep your creative business running smoothly.
Myth: Things like Etsy’s Seller Protection Policy can cover me for product liability claims.
Truth: Online marketplaces like Etsy do not take any responsibility for claims.
Most people don’t read the fine print before agreeing to the Terms and Conditions. But if you are someone who sells your work online, you may want to double check your user agreement.
Sites like Etsy usually only cover shipping disputes, and their policies protect them from being named in any lawsuits filed against you and your products.
In fact, Etsy’s fine print explicitly states they will not cover you for any claims of product liability. And if they do get drug into a lawsuit because of you or your products, you have to pay for all their legal fees and dismiss them of any responsibility. Ouch.
Luckily, ACT can help make up the difference so you don’t have to. You can have help through the claims process, receive financial support for claim expenses, and even get covered for some cases of indemnification (aka covering for someone or something like Etsy).
Myth: I only need general liability insurance to protect my small business
Truth: General liability insurance only covers you for slip-and-fall claims
As a creative, you have a lot more to protect than you think. There’s your products, your inventory, your tools, and your booth supplies. Oh, and any business information you keep on a computer—like digital files, financial information, and customer information if you take electronic payments.
The only thing general liability insurance really covers you for are third-party claims related to your business operations. So someone tripping in your booth at an event, a customer’s purse getting damaged in your studio, or you saying or publishing something false about another business.
ACT can help you protect more. With our annual policy, we can insure:
- Products you create (product liability insurance)
- The tools you use and your booth display (business personal property insurance)
- Electronic business documents and customer information (cyber liability insurance)
- Rented studio space (damage to premises rented to you)
- Your advertisements (personal and advertising insurance)
- Classes or demonstrations you instruct (professional liability insurance)
It’s time to see the truth about insurance and get serious about your business’s protection. Join the thousands of creatives who trust ACT each year, and start covering your craft today.
