That’s our topic for this Art Biz Podcast. Stay with me because this is important.
Claudia McClain, founder of HomeBusinessInsurance.com, addresses the various levels of an artist’s career and the kinds of insurance you need at each point. I loved the way she broke this down – explaining very clearly what type of insurance you need at each level.
You never think about business insurance until someone asks to see your certificate of insurance or, more likely, until it’s too late. Until something bad has happened.
If you are an artist selling your art and you don’t have a specific policy for your business, this episode is for you. Refrain from clicking the Play button at your peril …
Level 1: Homeowners Insurance Only
This is the earliest phase in an artist’s career and is for hobbyists only. You’re making art just for yourself, not to sell.
At the point when you start selling, you are considered a business by the IRS and must take additional steps to protect your business.
Level 2: Incidental Business Occupancy Endorsement
This is a very affordable option for your home studio, which is tacked onto your homeowners policy.
It doesn’t cover the instances when you take your art outside of your home, and it might not cover liability when you have visitors to your home studio. That’s when you need …
Level 3: Home-Based Business Policy
In this step, your home is still your base of operation, but you are taking your art to festivals or exhibitions outside of the home. These venues are likely to ask for a certificate of insurance. However, even if they don’t, you still want to protect yourself.
If you usually purchase insurance for a single event, it’s probably more cost-effective to insure your business for the whole year.
Level 4: Commercial Insurance
When you get to the point where you are earning significant revenue and/or you have a studio outside of the home, you need to look into commercial insurance.
Mentioned + Resources
Get a quote for what insurance might cost for your art business. (Rates based on Western U.S.)
About My Guest
Claudia McClain is founder of HomeBusinessInsurance.com, which, serendipitously, she started in her own home in 1977. Claudia came to my attention through a mutual artist-client (thanks, Cynthia Lait!) and clearly has a passion for helping artists make sure their businesses are protected.
Subscribe on iTunes and please leave us a rating there. We’d love to know that you’re listening and enjoying it!