Photo Booth Insurance: Business Liability, Quotes from $5

Photo booths have grown from being random spots to modern complex booths that provide interactive digital displays to email photos or texts. Though it functions simply, your photo booth business needs coverage too.

This is why it is essential to address risks with photo booth insurance. This insurance policy protects your business against various claims that could otherwise cause severe financial losses. To help you understand the importance of this policy, we will discuss what it covers and why you should consider getting it. We will also mention its cost.

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Photo Booth Liability Insurance

Liability insurance is the first type of photo booth business insurance you should consider getting. This protects your business against various claims from third parties. Insurance companies sell different types of liability insurance. However, the most useful is general liability insurance.

Commercial general liability insurance is a common inclusion in tailored photo booth insurance. This policy is designed to protect your business against claims filed by a third party or third parties after sustaining injuries or property damage. In personal injury claims, general liability insurance will cover the medical expenses of the aggrieved party. In property damage claims, general liability insurance will reimburse the owner of the property that your photo booth business damaged or destroyed.

You could suffer a massive blow if someone experiences theft while using your photo booth. The person might accuse you of being liable and ask for settlement as you have failed to place your photo booth in a safe and secure location. Luckily, photo booth general liability insurance can provide coverage in this situation

General liability insurance has products and completed operations coverage that is key for photo booth businesses.

Picture a scenario where your photo booth is rented for a high-end corporate party. Then, for various reasons, it malfunctions, and all the photos captured that day get lost. The company could sue you for failing to meet expectations and not delivering services as agreed. This could cost you a lot of money if the court orders you to pay for damages. But if your general liability insurance has products and completed operations coverage, there’s no need to worry because it will cover compensatory payments, administrative costs, lawyer fees, and other associated expenses.

What if your photo booth is sued for advertising or reputational harm? Does general liability insurance provide protection? General liability insurance has advertising injury coverage. Advertising injury coverage will cover attorney fees, compensatory payments, administrative costs, and other expenses if a third party sues you for slander, false advertising, copyright infringement, libel, and other types of advertising or reputational harm.

If you're planning to install your photo booth in an amusement park or arcade, you should first inquire about the type of coverage the hosting business has in place to assist you in choosing the best policy for your business. In the long run, this may help reduce your insurance cost, as you may end up only insuring your business against perils that your host has not covered.

Photo Booth Public Liability insurance

If you find general liability insurance too much, then get public liability insurance. Public liability insurance covers personal injuries and property damage just like general liability insurance. But understand that, unlike general liability insurance, public liability insurance doesn’t come with products and completed operations coverage or advertising injury coverage.

Photo Booth Commercial Property Insurance

Many think that commercial property insurance isn't necessary for photo booths businesses. They might be right. But know that if you’re the owner of a thriving photo booth business, commercial property insurance is very useful. It provides protection against the following perils:

Destruction	Damage
Your photo booth business has an office and a warehouse where photo booths are maintained, fixed, and stored. Fire and extreme weather will destroy these.  In such an event, commercial property insurance will reimburse your losses based on the replacement cost or actual value of your business’s office or warehouse	Fire, theft, vandalism, and other covered perils will destroy your photo booth business’s office or warehouse. In this situation,  commercial property insurance will provide the money you can use to get damaged structures repaired. The amount you’ll get is still based on replacement cost and actual cash value

Commercial property insurance for your thriving photo booth business has additional stocks and contents coverage, and business equipment and tools coverage.  

Stocks and Contents Coverage	Business Equipment and Tools Coverage
If added with stocks and contents coverage, commercial property insurance will reimburse your losses if office furniture, important documents, photo booth repair and maintenance materials, and other valuables become damaged or lost due to fire, theft, vandalism, and other covered perils	If added with business equipment and tools coverage, commercial property insurance will reimburse your losses if your business’s photo booths become damaged due to fire, theft, vandalism, and other covered perils

Replacement Cost vs Actual Cash Value 

Commercial property insurance provides money based on the actual cash value or replacement cost of a covered property:

• Actual cash value - In actual cash value, the amount of money commercial property insurance provides will be equal to the depreciated worth of the covered property. For example, if your photo booth business’s $1 million office got burned and it depreciated 3% until such misfortune, you’ll receive $300,000 from commercial property insurance

• Replacement cost - In actual cash value, commercial property insurance will recoup your losses without taking depreciation into account. For example, if your $1,000,000 office got destroyed, you’ll receive the same amount of money from commercial property insurance 

Workers Compensation Insurance for Photo Booth Businesses

Does your growing photo booth business have employees? If this is the case, consider getting workers’ compensation insurance. Workers' compensation insurance will mitigate expenses if an employee becomes injured or sick due to a work-related hazard and requests help. This insurance will pay for:

Coverage	Function
Medical Treatment/Procedure	Your business’s photo booth might shock the employee working on it. Also, an employee in charge of collecting the revenues inside your photo booth might get robbed and shot while doing his or her job. In either case, the employee will require emergency medical treatment/procedure if injuries are sustained. Workers' compensation insurance covers this by taking care of all expenses
Hospitalization	Your photo booth’s employee might need to stay in the hospital after experiencing a work-related injury or disease. Workers' compensation also helps with this. It covers the hospital bills until your employee is discharged
Rehabilitation	An employee might experience an injury or illness that needs rehabilitation. There’s no need to worry about expenses if you have workers' compensation insurance. It will cover therapist fees, rehabilitation equipment, and other expenses on your behalf
Lost Income Compensation	Workers' compensation insurance will cover lost income if your photo booth business’s employee can’t work due to a work-related injury or illness. Compensation for lost income is a weekly allowance equal to two-thirds or 67% of the average weekly wage. For example, if your employee makes $980 per week, the weekly allowance from workers' compensation insurance will be $656.6
Death Benefits	Your photo booth business’s employees can die from a work-related injury or illness. Workers' compensation insurance has this covered. If your employee dies, workers' compensation insurance will pay for the funeral and provide financial aid to dependents

What Will Happen if You Don’t Get Workers Compensation Insurance?

Not getting workers' compensation insurance if your photo booth has one or more employees is punishable by law. The punishment differs from state to state. Here are some examples:

• Arizona - Failure to get workers' compensation insurance is considered a class 6 felony. You can be imprisoned for one year and demanded to pay hefty fines

• Hawaii - Not getting workers' compensation insurance is punishable by $100 per day multiplied by the number of employees not covered. For example, if you didn’t get workers comp for 5 days and 6 employees were not covered, the fine will be $3,000

• Illinois - Employers who don’t get workers' compensation insurance will be fined $500 multiplied by the days coverage isn’t purchased

Photo Booth Commercial Auto Insurance

Does your photo booth business have a commercial vehicle? If so, consider getting commercial auto insurance.  Inclusions in commercial auto insurance are:

• Auto liability coverage - Your photo booth business’s commercial vehicle will cause an accident and injure third parties or damage properties. Auto liability coverage in commercial auto insurance will help with this. It will shoulder the medical treatment of injured third parties. Also, auto liability coverage will reimburse the owners of damaged properties. If legal recourse is taken against you, auto liability coverage will also pay for attorney fees, administrative costs, compensatory payments, and other legal expenses 

• Physical damage coverage - Physical damage coverage has two types - collision and comprehensive. Comprehensive physical damage coverage will take care of parts repair or replacement if your photo booth business’s commercial vehicle incurs damage due to fire, theft, vandalism, and other covered perils. On the other hand, collision physical damage coverage will take care of expenses if your photo booth business’s commercial vehicle becomes damaged due to a vehicular accident

• MedPay/personal injury protection - MedPay and personal injury protection cover your commercial vehicle’s passenger and driver.  MedPay provides payments for the medical treatment and funeral of the driver and the passenger if your commercial vehicle causes an accident or gets involved in an accident. On the other hand, personal injury protection provides the same coverage but also takes care of compensation for lost income, after-hospital visits, and more

Photo Booth Business Owner’s Policy 

A business owner’s policy combines general liability and commercial property insurance. Get a BOP if you're thinking of buying commercial property and general liability insurance separately. 

However, in most cases, the BOP of different insurance companies has additional perks. For example, CoverWallet’s business interruption insurance features additional workers compensation insurance. On the other hand,  State Farm’s BOP has professional liability insurance and data breach insurance. 

Other Business Insurance for Photo Booths 

Employer’s Liability Insurance

Employer’s liability insurance will cover attorney fees, compensatory payments, administrative costs, and other legal expenses if an employee sues your business for negligence after committing a work-related injury or disease. While it’s available as a stand-alone policy, employer’s liability insurance is usually available as inclusion in workers' compensation insurance. 

Employment Practices Liability Insurance

Employment practices liability insurance provides coverage to the perils that employer’s liability insurance can’t take care of. If an employee sues you for sexual harassment, discrimination, wrongful termination, and other offenses, associated with the violation of employee rights, employment practices liability insurance will cover attorney fees, administrative costs, settlements, and other legal expenses. 

Business Interruption Insurance

Business interruption insurance ascertains the survival of your photo booth business during difficult times. If you need to stop business operations for a renovation project, relocation, or transfer of business location, business interruption insurance provides the money you can use to pay employee wages, loans, mortgages, taxes, and other operational costs while income isn’t generated. 

Employee Dishonesty Insurance

Employee dishonesty insurance will recoup losses if an employee commits a crime. In particular, this will provide coverage if your business’ employee commits social engineering, embezzlement, destruction of money and other securities, and other related crimes. 

Property in Transit Insurance

Property in transit insurance provides protection while your photo booth is being delivered from one location to the next. If your business’s photo booth becomes damaged or lost during the trip, property insurance will help to recoup losses. 

Equipment Breakdown Insurance

Your photo booths will eventually become weary and experience malfunctions. That’s why it’s smart to get the insurance that covers repair and replacement. The insurance we want you to get is equipment breakdown insurance. If your photo booth becomes broken during use, equipment breakdown insurance will provide money for repairs. But note that this insurance can give immediate replacements if your photo booth is less than three years old. 

Cyber Liability Insurance

Does your photo booth business have a website that collects sensitive information with the users’ consent? If this is the case, consider getting cyber liability insurance. 

Cyber liability insurance will provide protection if cyber criminals successfully get access to sensitive user information. This will pay for attorney fees, administrative costs, and other legal expenses if affected users decide to file a claim. Moreover, cyber liability insurance will cover PR costs. 

Photo Booth Insurance Cost

The average photo booth insurance cost is $33 per month or $396 per year for a $1 million general liability coverage. 

Keep in mind that several factors influence the cost of photo booth insurance. Some of them include;

Location

The location of your photo booth business plays a vital role in determining the cost of insurance. If you operate on a busy street where traffic is high, you will pay more for insurance. This is because the associated risk is higher in crowded locations. A customer could easily get injured while trying to access your busy photo booth. 

On the other hand, if your photo booth business is in a laid-back environment where human traffic is scarce, you could spend less for premiums. This is because the risk is significantly low compared to busy locations. 

Furthermore, the state where your business is located also influences the cost of insurance as some states have set limits on the cost of premiums.

Number of Employees

If your photo booth business has several employees, you could spend more on insurance as you need a policy that covers all of your employees. Insurance for your employees is essential since it covers various claims. For example, if an employee sustains injuries while working, you must cover their medical expenses. 

This is why you could spend more on insurance if you have many employees. Photo booth businesses with a small number of employees don't have to pay much on insurance because the risk is lower.

Claims History

Claims history pertains to the number of instances you’ve asked the insurance company to let you use coverage. If the carrier sees that you have frequently made a claim to your past insurer, the cost of your photo booth insurance will rise up. The opposite happens if your claims history is clean. 

Business History

Insurance companies will impose lower premiums if your photo booth business is operating for more than one year. In fact, you’ll find carriers that offer a discount once they see that your business is three-years-old or more.