Why have Public Liability insurance?

A question cropped up on a photography forum the other day from someone who is just starting out with their business and they were balking at getting public liability insurance. Their reasoning was because they were only doing small jobs then the $312 dollars annual premium was not worth it.

That was from someone in America for crying out loud, the most litigious country there is.  10 lawyers for every “normal” citizen (or some ridiculous statistic like that)

Anyway everyone replying explained the requirement for it.

If you don’t know why you may need it yourself then read on.

DO I need PL Insurance?

The simplest test for this is -  if you accept any money, including expenses, for any work you undertake or have undertaken then you really should have Public Liability cover.

 The only photographer that doesn’t need it is the photographer that can afford to lose their home  and business. So unless you fit into this small minority then you should consider this important insurance before you step out of your house.

Public Liability, or PL as it is known, covers your liability for any damage you may due to another person, or property, accidentally whilst undertaking work. This could be a simple accident such as someone falling over a tripod, scratching or breaking furniture right through to more serious issues that could leave people scarred or disabled for life.

What is the worse that can happen if I don’t have it.

Well if losing your business and home is bad than that is how bad it can get.

 I have heard of a case not so long ago that demonstrated this, where a photographer was undertaking work for a Local Authority – luckily he had £5 million PL cover. As he was taking pictures of the mayor shaking hands at a Civic ceremony, he stepped back and knocked an old lady who was behind him on the pavement. She wobbled and fell, hitting her head on the corner of the paving stone separating the pavement and road. The accident left her severely brain damaged and she required constant care 24 hours a day as she was unable to look after herself. The photographer was taken to court and the family won £3.1 million in damages to ensure her care for the remainder of her life. This was in the UK! Not the US where this sort of case happens regularly for a lot smaller injuries.

With the growth of the “compensation culture” and the “no win, no fee” ambulance chasing lawyers around then claims for even minor injuries and damage are becoming very commonplace.

Payouts seem to be increasing all the time.

This case certainly might of been a rare accident but then so is winning the lottery and people win that. It can and does happen.

Yeah but I only do little jobs in peoples homes and offices. Surely I can manage without it?

Simply put, NO you can’t.

 The other thing PL covers is 3rd party property damage. This would cover you if you damaged someone else’s property whilst conducting some photographic work. For example, you might be in someones home and drop a lens or flashlight onto their glass coffee table, the family dog might bang into your tripod and cause the camera and lens to fall onto their expensive Italian marble fireplace etc.

 A simple accident like this could cost in the region of a £1,000 or more – Do you want to have to stump up that sort of amount or more! With most PL cover there is traditionally a £250 excess for 3rd party property damage, so it is worth remembering to try and be as careful as you can when you’re dealing with others!

How much cover do I need?
Packages are available offering £1 million, £2 million and £5 million PL cover. If you are working in hotels, restaurants, for a Local Authority or in a shopping centre then the chances are you will be asked for the £5 million option. As with anything, the more cover you require the more expensive it becomes, but £2 million seems to be a popular starting point and you can always extend to £5 million for short term cover!

Working in airports, railways, in the air or some other high risk areas will demand that you have the higher levels and the premiums will increase for those things as they are considered a greater risk by insurers.

Often businesses will demand a certain level of PL insurance prior to awarding contracts or allowing access to their premises. It is always worth checking first.

What is the difference between Public Liability and Professional Indemnity?
PL cover is for damage to another person or their property whilst Professional Indemnity or PI as it is known, covers your liability for failing to produce work to a professional standard.

For instance,  if you are required to produce a certain amount and type of image to a deadline because publication depends on it. If you fail in your professional duty and cannot or don’t produce the images per contract then the client could claim any financial loss from you.

Professional Indemnity Insurance provides you with financial protection for your business, the costs of defending claims made against you, including damages that may become payable.

PI cover is a MUST for one off events like weddings, where you have been booked to provide photographs, but is unlikely to be needed at events where you would “sell” photographs afterwards to make money – after all, if you don’t get the shot that is wanted you won’t sell any pictures!

Do I always have to have both PL and PI?
No. As mentioned, if you are doing one off events on a commission, then it is important that you are covered. ( Always try in the case of weddings to get the Bride & Groom to cover themselves with wedding insurance too! ) If for example, you are a landscape photographer or deal solely in Portraits, if anything was to happen you could go back and take the pictures again. This is unlikely to be the case at a wedding!

Really, how does PI really help me?

As mentioned already, the UK is becoming more litigious. You may be sued by a client who is merely dissatisfied, but has no valid claim (basically has changed their mind and does not want to pay).

 This could involve you in substantial legal costs and non-productive time. From the legal standpoint, the position with regard to the “duty of care” is the same for any professional. If you offer a service in a specific area or set yourself up as a specialist, you owe a “duty of care” to anybody who might reasonably rely upon your service and advice over and above that owed by the ordinary man in the street.

What is a good example of a PI claim?
A good example of where PI would be useful is if you were to undertake wedding photography and the bride and groom felt the pictures you produced were substandard or you were unable to produce them as the film had been lost or stolen or the data card wiped. They may then choose to issue legal proceedings against you. If this was the case, PI insurance would cover the costs of defending and/or settling the claim.

OK. I am convinced, now what?

Always make sure that the cover you have in force is suitable.

It is always best to get this insurance from a specialist who knows the market. Even then though, make sure that you thoroughly check through the policy documents and ensure that you are covered for everything that you require.

Get everything in writing, do not take their word for it over the phone.

Never, never, leave the house, or invite clients around without PL cover if you are earning money from photography. The risks are too great!

There are a number of companies offering good PL and PI cover for the photography industry. Search around for the best deal for you.