Business insurance for graphic designers: What it covers and why it matters

Insurance for graphic designers is often questioned – why do they need insurance? What are they even covering? One Reddit user questioned exactly this:  

“What is a designer insuring, exactly? It makes sense with plumbers and electricians because poor work can easily lead to damage and/or physical harm, but I still don’t follow why a designer would need it.” 

The reality is graphic designer insurance can actually cover quite a lot! 

Creative professionals face a unique set of challenges that can lead to costly disputes, legal claims, and potential reputational damage. From copyright issues to client disagreements, the possibility for things to go wrong is very real – and when they do, freelancer insurance can be the safety net that protects their business. 

We’re here to lay it all out – the risks graphic designers face, real-world examples of claims, and break down what graphic designer insurance typically covers. 

*Disclaimer – this a general guide to insurance and exact coverage, conditions and exclusions may differ per policy and insurance provider. Please always check your policy documentation and/or terms & conditions for more details. 

Risks graphic designers face 

Being a graphic designer might seem like a fairly safe profession – you’re not out and about, exposed to risk of injury or property damage. Truthfully, there are risks graphic designers face, though they’re less obvious (but no less costly, especially for freelancers and contractors!). 

For example: 

• Copyright infringement – accidental use of unlicensed assets 

• Client disputes – missed deadlines, misunderstood briefs, or rejected work 

• Defamation/libel – a design is part of a campaign that causes reputational damage 

• Data breaches – customer files or data are hacked, leaked or lost 

• Professional negligence – a design mistake causes project delays and financial loss 

• Inability to work – inability to work (and earn) following accidental personal injury or being summoned for jury duty 

• Damage to business equipment – laptops, phones, tablets or other portable business equipment is damaged or lost. 

Real-world examples from freelance graphic designers 

It’s one thing to know the risks that graphic designer businesses might face. It’s another to understand the ways these risks might manifest. To put it into perspective, we’ve gathered real-life stories from designers who’ve faced legal action, client disputes, and unpaid invoices. 

These examples – drawn from real user comments on Reddit – show how things can go wrong, and why having the right insurance in place isn’t just a nice-to-have, but possibly a business life saver. 

Client uses graphic design files after refusing to pay 

One graphic designer on Reddit experienced a client who refused to pay for work they had done. The designer never sent any final files over, but the client still managed to source a low-quality PNG of the design and went ahead and used this on their social media, shop signs and general branding. The designer then had to look at potential legal action against the client. 

Freelance designer’s 3 experiences with being sued 

In response to a thread discussing the importance of freelancer insurance, another designer shared stories of the 3 times they’ve been sued: 

1.  After quoting a flat price for a project, completing the work and receiving payment/approval, the client asked for re-dos of the work outside of scope. When the client became unhappy that the extra work would be an additional charge, the designer ended the relationship. The client then tried to sue for the original cost of the project.  

2. A client paid a 50% deposit for web development work with the contract specifying the deposit becomes non-refundable after a certain number of hours of development. After positive feedback throughout the project, the client decided 3 days before go-live that they weren’t happy and wanted their deposit back. Upon refusing to return the now non-refundable deposit, the client sued. 

3. The designer was hired for a local authority’s public art project, but only trusted verbal confirmation of the contract from their contact (didn’t ask for a copy of the contract). After completing the work, the contact was fired and the local authority denied authorising the project, leading to a lawsuit for unauthorised work. 

Young designer’s unpaid work reused by client 

A young freelancer took on a rushed design job for a streetwear brand connected to a longtime client. The brand ghosted them, changed their minds a lot and eventually stopped replying to correspondence. The designer later saw posts online for the project (presumably worked on by a different designer) that used parts of their own work the client didn’t pay for. 

What is insurance for graphic designers? 

Graphic designer insurance is specialist insurance that protects professional designers from financial risks related to their work. 

It typically insures against client disputes, copyright infringement claims, accidental damage to third-party equipment, missed deadlines and more. This insurance helps safeguard your income and reputation in creative projects – which can be invaluable for solo contractors reliant on their own ability to work. 

What you’re covered for will vary across insurers, some even with optional add-ons to tailor your policy to your needs. 

There are a few different types of graphic designers insurance like… 

Public liability insurance (PL) 

What is it  

Also referred to as PL, public liability insurance covers claims where you/your business is held liable for accidental bodily injury or property damage to third parties. 

If you ever work away from home (client offices, co-working spaces, or even cafes) or have third parties visit your workspace, public liability insurance could protect you against potentially high costs of accidental damage or injury to someone else (or their property).  

What can public liability cover  

• Accidental third-party bodily injury or property damage (excludes employees)   

• Compensation payments   

• Repair costs   

• Professional fees (including legal)   

• Medical fees 

Example designer public liability insurance claim 

While working at a co-working space, a graphic designer knocks over and damages monitors belonging to the office owner, prompting a claim against the designer for third-party damage. 

Professional indemnity insurance (PI) 

What is it  

Sometimes abbreviated to PI, professional indemnity insurance typically covers claims of financial loss caused by your professional negligence while providing professional advice, consultancy or other services.  

What can professional indemnity cover  

Compensation claims and legal fees you may need to pay as a result of:  

• Professional negligence (incorrect advice or provision of services)  

• Loss of private data or documents  

• Causing financial loss 

• Breach of confidentiality 

• Infringement of intellectual property rights 

• Defamation  

Example of designer professional indemnity insurance claim 

A designer unknowingly uses a copyrighted image in a client’s branding materials. The original creator sues the client, who then files a claim against the designer for damages. 

Personal accident cover (PA) 

What is it  

Sometimes referred to as “occupational accident cover”, it pays a weekly benefit if you can’t earn a living due to an injury sustained while working or travelling to and from work. 

While graphic design may not seem physically risky, accidents can still happen – like trips, slips while working on-site or motor incidents while commuting. 

It can also pay a lump sum if you’re left permanently unable to work or an incident is fatal. 

What can personal accident insurance cover  

Accidents and injuries that happen while:  

• Travelling to or from workplace and home  

• Working at a client’s premises  

• Working from your home, your office, or workplace  

Example of designer personal accident claim  

A designer is involved in a cycling accident en route to a client meeting, resulting in injuries that prevent them from working for several weeks. 

Cyber liability cover 

What is it  

Cyber liability cover protects against the financial implications of cyber attacks like data breaches, accidental data leaks and subsequent reputational damage management fees. 

It specifically covers cyber incidents and data breaches affecting your own systems or data or third-party digital service providers. 

What can cyber liability cover  

• Business interruption costs  

• System and data rectification costs  

• Regulatory defence and penalties  

• Cyber extortion and ransom costs  

Example of graphic designer cyber liability claim 

Malware locks access to a designer’s computer and files. The attacker demands payment, and the insurance helps cover ransom costs and system restoration. 

Employers’ liability insurance (EL) 

What is it  

Employers’ liability insurance is a legal requirement if you employ anyone – not all freelancers will need this. It covers legal and compensation costs for claims from employees who are injured or get ill while working for you.  

There are some employers/company types that are exempt – you can find more information on page 3 of HSE’s guide for employers. 

What can employers’ liability cover  

• Employee injury or illness due to their work or your workplace  

• Legal expenses to defend the claim  

• Medical expenses you’re liable for  

Example of an employers’ liability claim for a designer 

A design apprentice slips on a wet floor in the studio and injures their back. They claim compensation for recovery time and medical expenses. 

Legal expenses cover 

What is it  

Legal expenses insurance can cover legal costs (advice and representation) in case of disputes related to your work or business – like contract disputes, debt recovery, tax investigations or certain employment-related issues. 

It could also provide cover if you’re called up for jury duty!  

What can legal expenses insurance cover  

• IR35 investigations  

• Legal defence costs for HMRC enquiries (tax, national insurance etc.)  

• Contract disputes  

• Loss of earnings due to jury duty  

• Costs resulting from identity theft  

• Legal fees to recover losses from personal injury (caused by a third party)  

• Debt recovery (unpaid goods or services)  

Example of a legal expenses claim for a designer  

A customer refuses to pay for completed work, claiming it wasn’t delivered as agreed. Legal expenses insurance could cover the cost of pursuing payment through legal channels. 

Business equipment cover 

What is it  

Business equipment insurance typically covers the cost to repair or replace equipment owned/used in connection with a business if it’s accidentally lost, damaged, destroyed, or stolen (when stored securely with signs of forced entry). 

What can legal expenses insurance cover  

• Computers 

• Portable equipment (cameras, graphics tablets etc.) 

• Laptops 

• Mobile phones 

• Tablets 

Example of a business equipment claim for a designer  

A graphic designer accidentally knocks their coffee over their Wacom tablet, causing it to short circuit. Business equipment insurance could cover the cost to repair or replace the tablet. 

Choosing the right insurance graphic design insurance 

Now you know what types of business insurance a graphic designer might benefit from, how do you go about deciding what policy to go for? A few tips:  

• Risks: Identify any potential risks related to your line of work – like unpaid invoices, data loss, or client disputes. This helps determine the types of insurance that are most relevant to you. 

• Limits: This refers to the maximum amount your insurer will pay out. For example, if your public liability limit is £1 million, that’s the highest amount you can claim under that policy – make sure your limits are enough for the risks you face. 

• Conditions & exclusions: Always read the policy wording carefully. Exclusions outline what’s not covered, while conditions specify what you must do for a claim to be valid. 

• Extra cover: Freelancer insurance often bundles policies like public liability and professional indemnity insurance. Check for optional add-ons like cyber or legal expenses cover to tailor protection to your needs. 

Graphic designer’s insurance with Kingsbridge 

Trusted by over 33,000 contractors, we’ve used our years of expertise to build a business insurance policy specifically for creative contractors – like graphic designers! 

Our combined Media & Creative Contractor Insurance includes standard cover like Public Liability insurance, Professional Indemnity insurance, Employers’ Liability insurance and Personal Accident Cover all under one policy. It’s designed to cover common risks that freelance designers face, as well as be flexible to each contractor’s needs. 

That’s why it can also be tailored with add-ons like Cyber Liability, Legal Expenses, Business Equipment Cover and IR35 Protect. 

Interested in Contractor Insurance or simply have a few questions about our cover? You can get a quote online in minutes or speak to our dedicated in-house team on 01242 808740.