INSURANCE FOR PHOTO BOOTHS

Insurance gets such a bad rep. I think it's hard because people pay money every month but essentially get nothing in return other then a piece of paper. Everyone thinks that you only need insurance  for when a big claims happens or even a little claim but the reality is that you also need insurance to operate at some venues.

A professional photo booth company WILL ALWAYS HAVE INSURANCE. 

an insurance policy is made up of Various components to cover different aspects of your business. You do not want to shop your insurance based on price, usually cheaper price means less coverage and you do not want to be left in a situation where you aren't covered for a loss. 

ALWAYS CONTACT A BROKER TO MAKE SURE THAT YOUR SPECIFIC BUSINESS IS COVERED PROPERLY BECAUSE EACH BUSINESS IS DIFFERENT. 

Let's take a look at some common term and talk about them REALLY BRIEFLY in plain English. 


COVERAGE SECTIONS

BUSINESS INSURANCE FOR PHOTO BOOTHS

property 

BUILDINGS YOU OWN

CONTENTS

CAN INCLUDE FURNITURE, COMPUTERS, INVENTORY, STOCK, MACHINES AND OR EQUIPMENT.

EQUIPMENT

SOME INSURANCE POLICES WILL SEPARATE EQUIPMENT UNDER IT'S OWN COVERAGE SECTION SO THAT THEY CAN OFFER DIFFERENT COVERAGE THEN THE CONTENTS. IT IS NOT UNCOMMON TO HAVE BOTH CONTENTS AND EQUIPMENT COVERAGE.

CRIME

THEFT OF MONEY BY THIRD PARTY (LIKE A FAKE CHECK) OR BY YOUR EMPLOYEES (IN SOME CASES). THIS CAN INCLUDE CASH, CERDIT CARD AND CHECK. 

***THIS COVERAGE IS OFTEN CONFUSED WITH THEFT OF CONTENT BUT THEFT IS COVERED UNDER THE PERILS SECTION OF YOUR POLICY. 

LIABILITY

COVERAGE FOR DAMAGE TO OTHER PEOPLE (BODILY INJURY) OR OTHER PLACES (PROPERTY DAMAGE) CAUSED BY YOUR NEGLIGENCE. HERE ARE A FEW EXAMPLES OF WHAT "COULD" BE CONSIDERED A LIABILITY CLAIM:

  • YOU DIDN'T TAPE DOWN YOUR CORDS PROPERLY AND SOMEONE TRIP, FELL AND HURT THEMSELVES. THEY SUE YOU.
  • YOU USED THE WRONG POWER CORD ON THE TABLET WHICH EXPLODED AND CAUSED A FIRE DAMAGING THE VENUE. THE VENUE SUES YOU FOR DAMAGE TO THE PROPERTY AND POTENTIALLY LOST REVENUE FOR THE TIME THEY HAD TO SHUT DOWN BECAUSE OF THE FIRE. (YIKES, THIS COULD PUT SOMEONE OUT OF BUSINESS AND MAYBE OUT OF A HOMES IF YOU DON'T HAVE INSURANCE AS A SOLE PROPRIETOR)

LIABILITY IS ALL ABOUT OTHER PEOPLE AND THEIR STUFF. 

IF YOUR ATTENDANT USE THEIR OWN VEHICLES TO PICK UP THE PHOTO BOOTH YOU SHOULD ALSO ASK ABOUT NON-OWNED AUTO COVERAGE. THIS EXTENDS COVERAGE TO YOUR COMPANY SHOULD YOU ATTENDANT CAUSE A LOSS WHILE DRIVING THEIR OWN CAR FOR YOUR COMPANY. 

COVERAGE TYPE

ALL PERILS/ALL RISK

PHOTO BOOTH CERTIFICATE OF INSURANCE

COVERS EVERYTHING UNLESS SPECIFICALLY EXCLUDED. THIS IS THE PREFERRED TYPE OF COVERAGE AS IT WILL OFFER THE MOST COVERAGE. MANY OF THE EXCLUSIONS ARE FOUND HERE BECAUSE EITHER THEY ARE COVERED BY ANOTHER SECTION OF THE POLICY OR THEY REQUIRE A SPECIAL TYPE OF INSURANCE POLICY TO COVER IT. HERE ARE JUST A FEW OF THE MOST COMMON EXCLUSIONS:

  • WAR - IF COVERAGE IS REQUIRED THEN YOU WOULD NEED TO SEEK A SPECIAL POLICY
  • MECHANICAL BREAKDOWN - COVERED UNDER SEPARATE SECTION OF THE POLICY OFTEN CALLED BOILER AND MACHINERY
  • WEAR AND TEAR, RUST, DETERIORATION, ETC... - THIS IS NOT A MAINTENANCE POLICY
  • EMPLOYEE DISHONESTY - THIS IS COVERED UNDER THE CRIME SECTION
  • FLOOD - CAN SOMETIMES BE ADDED BY ENDORSEMENT
  • EARTHQUAKE - CAN SOMETIMES BE ADDED BY ENDORSEMENT

NAMED PERILS

THIS COVERAGE IS VERY LIMITED AS IT ONLY COVERS WHAT IS SPECIFICALLY LISTED UNDER THE PERILS SECTION SUCH AS DAMAGE BY FIRE AND ALSO HAS EXCLUSIONS ON TOP OF THAT. 

REPLACEMENT COST

THIS ONE IS ACTUALLY EXACTLY LIKE WHAT IS SOUNDS. IN THE EVENT OF A CLAIM YOU WILL RECEIVE AN AMOUNT THAT WILL ALLOW YOU TO REPLACE YOUR ITEM.

SO LET'S SAY YOUR REBEL T3I IS A COMPLETE LOSS. THE INSURANCE COMPANY WILL LOOK AROUND TO SEE WHAT IT WOULD COST TO PURCHASE A NEW REBEL T3I TODAY AND GIVE YOU THAT AMOUNT. IF THE REBEL T3I IS NO LONGER AVAILABLE THEN THEY WOULD LOOK AT THE NEXT MOST COMPARABLE CAMERA. 

ACTUAL CASH VALUE

ANOTHER TERM THAT IS EXACTLY AS IT SOUNDS. IN THIS SCENARIO YOU WILL ONLY RECEIVE WHAT THE VALUE OF THE CAMERA IS TODAY. 

IF YOU HAD A COMPLETE LOSS ON YOUR 5 YEAR OLD REBEL T3I THEY WOULD ONLY GIVE YOU WHATEVER IT WOULD COST TO REPLACE THIS 5 YEAR OLD CAMERA WITH ANOTHER 5 YEAR OLD CAERMA IN THE SAME CONDITION AS YOURS. 

OTHER INSURANCE WORDS

DEDUCTIBLE

THE AMOUNT YOU ARE WILLING TO SELF INSURE YOURSELF. FOR EXAMPLE, YOU WILL COVER THE FIRST $500 OF LOSS AND THE INSURANCE COMPANY WOULD COVER ANYTHING OVER THAT. 

INCREASING YOUR DEDUCTIBLE IS A WAY YOU CAN CUT DOWN ON YOUR INSURANCE PREMIUMS. 

ENDORSEMENTS

THESE ARE POLICY CHANGES AND CAN INCLUDE ADDING OR DELETING OF COVERAGE. 

EXCLUSIONS

THESE ARE WHAT YOUR POLICY WON'T COVER

CERTIFICATE OF INSURANCE

PIECE OF PAPER ISSUED TO PROVE YOU HAVE INSURANCE COVERAGE TO A THIRD PARTY. IT WILL OFTEN SHOW EXACTLY WHAT KIND OF INSURANCE YOU HAVE, YOUR POLICY NUMBER, INSURANCE COMPANY AND INCEPTION AND EXPIRY DATE.

ADDITIONAL INSURED

THIS IS WHEN YOU ARE ADDING SOMEONE TO YOUR POLICY TO PROVIDE THEM WITH COVERAGE SUBJECT TO THEIR INTEREST. 

FOR EXAMPLE: VENUES WILL OFTEN ASK TO BE ADDED AS AN ADDITIONAL INSURED SO THAT IF A CLAIM OCCURS BECAUSE OF SOMETHING YOU DID WHILE OPERATING THE PHOTO BOOTH AT THEIR VENUE. THEY WON'T BE ON THE HOOK AND YOUR POLICY WILL COVER THE LOSS EVEN IF SOMEONE COMES AFTER THE VENUE FOR DAMAGES. 


IMPORTANT QUESTIONS TO ASK YOUR BROKER ABOUT YOUR COVERAGE

BECAUSE INSURANCE DOCUMENTS ARE CRAZY LONG AND CONFUSING AS ALL HELL IT'S IMPORTANT TO ASK THE RIGHT QUESTIONS AND GET THE ANSWERS IN WRITING FROM YOUR BROKER. EVEN AFTER 14 YEARS IN THE INSURANCE INDUSTRY AND EVEN WRITING INSURANCE WORDING MYSELF, SOME POLICIES ARE STILL LEFT TO INTERPRETATION OF WORDINGS. LEAVE THIS TO THE EXPERTS, THAT'S WHY YOU PAY THEM COMMISSIONS. 

  1. IS MY CAMERA EQUIPMENT/PHOTO BOOTH (CONTENTS AND/OR EQUIPMENT) COVERED WHILE NOT AT MY PLACE OF BUSINESS FOR PHYSICAL DAMAGE AND LIABILITY?
  2. IS MY CONTENTS AND/OR EQUIPMENT COVERED WHILE UNATTENDED? (THIS IS IMPORTANT TO KNOW IN CASE YOU DO ANY PERMANENT AND/OR UN MANNED BOOTHS)
  3. IF I SET UP MY EQUIPMENT THE NIGHT BEFORE AT A VENUE AND LEAVE IT THERE AND SOMETHING HAPPENS  IS IT COVERED?
  4. IF SOMEONE IS HURT OR SOMETHING IS DAMAGED  BY A VOLUNTEER, CONTRACT WORKERS OR EMPLOYEES WORKING FOR US,  WOULD THIS POLICY COVER IT?
  5. DOES MY INSURANCE COVER ME FOR ANY EQUIPMENT I BORROW, RENT OR LEASE? 
  6. WHERE AM I COVERED? CANADA? THE CONTINENTAL US? WHAT ABOUT HAWAII? 
  7. IS MY CONTENTS AND/OR EQUIPMENT COVERED WHILE I TRAVEL WITH IT ON A PLANE? WHAT ABOUT IF I SHIP IT WITH A COURIER COMPANY?
  8. IS MY CONTENTS AND/OR EQUIPMENT COVERED IF IT GETS STOLEN OUT OF MY CAR? WHAT IF I FORGOT TO LOCK THE DOORS?
  9. DOES MY POLICY COVER THEFT OF MONEY BY MY EMPLOYEES?
  10. DOES MY POLICY COVER MY BUSINESS IN THE EVENT THAT MY EMPLOYEE, CONTRACT WORKER OR VOLUNTEER CAUSES DAMAGE WITH THEIR OWN VEHICLE WHILE WORKING FOR ME?

IMPORTANT THINGS THAT HELP KEEP YOUR PREMIUMS LOW

CHEAP PHOTO BOOTH INSURANCE
  1. PAY YOUR PREMIUMS ON TIME. IF YOU DON'T THEY WILL CANCEL YOUR POLICY AND IT WILL NOT ONLY MAKE IT HARD FOR YOU TO GET INSURANCE IN THE FUTURE IT WILL BE WAY MORE EXPENSIVE
  2. GIVE YOUR BROKER ALL THE INFORMATION YOU CAN ABOUT YOUR BUSINESS. THIS WILL HELP THEM MAKE SURE YOU HAVE THE RIGHT COVERAGE
  3. MAKE SURE TO REGULARLY UPDATE YOUR INSURANCE BROKER WITH ANY NEW INFORMATION ABOUT YOUR BUSINESS
  4. SOMETIMES HAVING ALL YOUR INSURANCE INCLUDING YOUR PERSONAL INSURANCE, AND COMMERCIAL AUTO WITH THE SAME COMPANY WILL PROVIDE  DISCOUNTS.
  5. INSTALLING ALARM SYSTEMS IN YOUR OFFICE CAN PROVIDE DISCOUNTS 
  6. SOME COMPANIES USE CREDIT SCORE TO RATE YOUR PREMIUMS. BETTER CREDIT COULD EQUAL LESS PREMIUM.
  7. DO NOT CLAIM LITTLE THINGS FREQUENTLY. COMPANIES WILL REMOVE COVERAGE OR CHARGE MORE IF YOU ARE ALWAYS PUTTING IN CLAIMS. AS A BUSINESS YOU SHOULD BE ABLE TO COVER SMALL CLAIMS LIKE AND IPAD. 

INSURANCE COMPANIES THAT OFFER SPECIAL COVERAGE FOR PHOTO BASED COMPANIES

THIS IS A LIST OF COMPANIES THAT HAVE FREQUENTLY BEEN MENTIONED IN PHOTO BOOTH FORUMS AND BY OTHER COMPANIES AS OFFERING INSURANCE SPECIFIC TO PHOTO BOOTHS. I DO NOT ENDORSE ANY OF THESE COMPANIES AND IT IS UP TO YOU AND YOUR BROKER TO MAKE SURE THAT THEY FIT WHAT YOU ARE LOOKING FOR:

UNITED STATES:

CANADA:

HOPE THIS HELPS CLEAR SOME THINGS UP FOR YOU! IF YOU HAVE FOUND AN AWESOME INSURANCE COMPANY YOU HAVE DEALT WITH THAT YOU WOULD LIKE TO ADD TO THE LIST PLEASE LET ME KNOW IN THE COMMENTS.


THIS IS NOT A COMPREHENSIVE OVERVIEW OF INSURANCE AND I AM NOT A BROKER. THIS BLOG POST IS MEANT TO HELP YOU ASK THE RIGHT QUESTIONS ABOUT YOUR INSURANCE AND GIVE YOU BASIC UNDERSTANDING OF WHAT SOME OF THE MOST COMMON TERMS MEAN.