Camera and Insurance News

Camera and Insurance

Good camera equipment is not cheap. Most photographers spend years acquiring theirs. If you had to replace all your equipment at once, or even a portion of it, would you be able to? What would you do if faced with such a situation? Settle for a fraction of the equipment you once had? Stop taking pictures altogether and pick up a cheaper hobby?

None of the above sound appealing? Consider insuring your equipment. If your equipment is insured, check the coverage and exclusions of your policy to make sure you have the coverage you need. If you lost all your equipment tomorrow, would your insurance company pay for the replacement value of your equipment? Would you face exclusions if you receive photography-related income? Understanding your level of coverage today could save you from being unable to shoot pictures tomorrow.

The type of policy you need depends on how you use your equipment. If you do not make any money through the use of your equipment, a standard homeowners or renters policy should cover against theft and fire, even when your equipment is outside your home. Typically, standard homeowners and renters policies cover you against named perils only. They also typically have deductibles. If your equipment is accidentally damaged, for example, you drop it, chances are it will not be covered under a standard homeowners or renters policy.

If you use your equipment for non-commercial purposes, another alternative is buying an "all-risk" floater. This attachment to your homeowners or renters policy includes a schedule of covered items. An all risk floater generally covers the scheduled equipment against everything except specifically excluded perils stated in the policy (e.g., acts of war). So if you're walking down a street and you accidentally drop your camera and a car drives by and runs it over, smashing it into pieces, it's covered unless that situation is specifically excluded in your policy.

If you use your equipment primarily for business purposes, you should be insured by a commercial inland marine policy. A commercial policy offers all-risk coverage for equipment, eliminates the potential of exclusions if equipment is used professionally, and offers a variety of optional floaters designed to insure against the liabilities faced by a professional (e.g., someone trips over your tripod).

That's a difficult question to answer. Some photographers who generate revenue from their work, even if it's not their primary source of income, need a commercial policy. Commercial policies are generally more expensive than personal policies and might be required depending on the value of your equipment and the level of income you generate from photography. It's not unusual for a photographer to talk with two different insurance agents and be told by one that they require a commercial policy while the other says a personal policy is sufficient. Your best bet is to talk to a number of insurance agents representing different companies and see which company will offer you the best deal. Remember that misrepresenting your information could cause your coverage to be denied. Worse, if you are offered a policy, misrepresenting your information could cause your claim to be denied, even though your policy is fully-paid!

Due to interest from the community, photo.net has arranged for a special photo equipment insurance program available exclusively to photo.net members. The program offers photographer's insurance at a heavily discounted rate as a photo.net subscription benefit. Click here to view a document outlining the coverage levels, benefits and associated costs for the insurance. If you're already a photo.net subscriber, you can access the insurance application form in the Subscriber Services section of your personal photo.net workspace page. If you aren't currently a photo.net subscriber, you can click here to subscribe.

Items of value, including photography equipment, that are not covered or have limited coverage on standard homeowners policies may be scheduled on a personal articles floater. Rates for insuring your equipment on a personal article floater vary among companies. Generally, you should expect to pay about $1.35 - $1.75 per every $100 dollars of equipment with no deductible. Coverage is usually in addition to your unscheduled property, giving you more coverage if there is a total loss. Most homeowners and renters insurance policies provide coverage against named perils only. If your camera falls off a shelf and breaks, it is not necessarily covered. Personal article floaters are usually written on an all-risk basis, meaning your equipment is insured against everything except specifically excluded perils. So, if you're leaning over the side of a boat to get the perfect shot, your strap breaks and your camera falls to the bottom of the ocean, it should be covered unless that peril is specifically excluded in your all-risk floater or if you intentionally threw the camera overboard. With a personal article floater, the burden is on the insurance company to prove that a claim is not covered. With a standard homeowners policy, the burden is on the insured.

Personal article floaters provide broad coverage, usually with no deductibles. Generally, you're agreeing on the value of your equipment prior to loss. When you apply for a floater, your insurance broker will ask you to list all your equipment, the market value/replacement cost, serial number and other information on your equipment. The market value of an item is the replacement cost of the item in its current state, not a new piece of equipment. Generally, insurance companies replace insured equipment and do not pay cash for the value of the item. If you want cash to replace the item yourself, generally you will have to negotiate with your insurance provider.

Personal article floaters can also cover items you've bought even if you have not told your agent. Policies can provide coverage for newly acquired items for up to 30 to 90 days if you pay a pro-rated premium.

If photography is your primary income, or a source of income, a commercial policy might be right for you. Generally a commercial policy is more expensive than a personal article floater attached to your homeowners or renters insurance policy. You should expect to pay between $1.75-$2.25 per every $100 dollars of equipment with a deductible between $250-$500 per claim. A commercial policy offers a similar level of coverage for equipment as an all risk personal article floater, but eliminates the potential exclusion of equipment if used professionally.

Additional coverage available on a commercial policy includes general liability, commercial property, workers compensation, commercial automobile coverage and umbrella liability to name a few.

Most states require you to carry workers compensation insurance(they're so good in Massachusetts of keeping track of this even photo.net had to comply when sent notice after only a month of incorporation). Professional photographers operating a studio with employees could be liable for any and all costs associated with injuries in the event fo an accident. Professionals not only face this liability with full-time employees, but also with anyone they have hired for an assignment. Carrying workers compensation protects you from personally being liable for such costs. General liability insurance further protects you from third party bodily injury or property suits.