Insurance - Who has it?

[danny]

Boy I hope this is not going to be one of those thread that opens up a can of worms :roll eyes: but here goes…

I am starting to develop my photography into a very small business (i.e. people are giving me money to come and take some family portraits or attend local events). Honestly everything seems to be going along nicely and I am happy with everything EXCEPT I have this little voice in my head telling me "what if someone falls over my camera bag?" or "falls when I ask them to move and they break an arm?". So it leads me to ask the questions

1 - should I have insurance?
2- who do others use?


I am in the process of registering a business name and getting an ABN.

Cheers
Danny

[ricktas]

yes you should have insurance!

If one of these people trips over your camera bag, and not only breaks your camera, but breaks their arm as well and they cannot work, who do you think they are going to want to pay for this? Are you prepared to pay someone else's wage, medical bills, etc, if the answer is no, then you need insurance.

You need insurance over your equipment and public liability insurance. Talk to your existing insurer, they may offer you a discount for multiple policies.

[ScottJon]

You'll need insurance with any business really, I own 2 x companies in the construction industry and my god my insurance bills p/a are huge, but I'm needing to have cover upwards of 10-20 million dollars for some projects due mainly to the fact if I was to damage something while conducting my works.

Then comes the insurance for employees and then other people who may be injured like you said tripping over etc.

As rick said have a chat to your insurer, I use a broker and they are fantastic! although I'm sure it's because they are all making a killing from me :P

With a small photography business thats all registered and above board I'm sure the cost won't be too high

Good luck

[danny]

Thanks Rick and Scotty i'll give my insurer a call and see what they say.

Cheers
danny

[kiwi]

PPIB for both camera and public liability for me - yes - it's something you should have - and sometimes have to have to get certain jobs - especially commercial

[Redgum]

Danny, firstly you need to work out if you have a business. Do you declare income as a business? Have you got a registered business name? The ATO rules are a good guideline to establish if you are in fact in business.
You can earn a considerable amount from hobby income without being a business with all the additional expenses. Insurance is relatively expensive. i.e. You might earn $4000 pa and pay $800 for insurance. That's not viable.
Don't forget that for a person NOT running a business as such their home and contents will cover many risks. Also, you need to understand what you get for your premium. Like Health insurance, you only get what you pay for so it's the maximum premium or much higher risk and then you're back to square one.
Certainly, if you intend to make photography your primary income, insurance is necessary BUT if not there are other more equitable solutions that achieve the same goal.

[danny]

Rick, Scotty, Kiwi and Redgum.

A huge thank you for your input. Considering all three of you are what I would describe as "very successful", I appreciate your advise.

I have already enquired to a few insurance agencies and their quotes seem reasonable <$300 for public liability. And although I am not anticipating photography being my sole "profession/income", I just couldn't run the risk that something could happen.

Cheers
danny

[danny]

wow! There certainly is a big variation in the cost of insurance in Australia!!!! $550 - $260 for very similar if not identical policies.

Danny

- - - Updated - - -

wow! There certainly is a big variation in the cost of insurance in Australia!!!! $550 - $260 for very similar if not identical policies.

Danny

[kiwi]

There's also a big variation in actually what each policy covers - i would say that like for like costs will not change much as the underwriters often the same

[junqbox]

yes, all the DSLR kit i regularly take out.

[Redgum]

yes, all the DSLR kit i regularly take out.

Insuring equipment in business can be very expensive. However, if under home and contents (private use) it's only about 25% of the business premium. Sometimes even less.
Unless you're earning say $30k or more you are far better off declaring hobby income, paying tax, but not operating as a business as such with all the added expenses (check the ATO for income levels).

[junqbox]

Insuring equipment in business can be very expensive. However, if under home and contents (private use) it's only about 25% of the business premium. Sometimes even less.
Unless you're earning say $30k or more you are far better off declaring hobby income, paying tax, but not operating as a business as such with all the added expenses (check the ATO for income levels).

Having had a camera bag stolen with $8K of equipment and getting $2K back through my home cover, I decided this was a better option for me because it covered a substantial amount of equip (can be up to $10K+ when holidaying), no matter where I am and what conditions I'm claiming under.

[Redgum]

Hi junqbox, what's the premium for $8k and who with? Is it worldwide or national coverage?
Leads on good insurance are always worthwhile.