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Insuring Your Photo Booth: Everything You Need to Know

Cameron Bingham

Insurance is never the most exciting topic to talk about, but it's something that you absolutely need.

Not only is it important to protect your business and equipment, but it's essential in order to protect yourself from any potential lawsuits.

We're not licensed insurance brokers, so it's crucial that you reach out to one in your area for guidance. What we will discuss today, however, are some of the insurance terms and what they mean so that when you meet with your local broker, you have a better idea of what to ask for and what they're saying.

Your Property

Your property is, in this case, your photo booth. You're going to want to look at what type of coverage your insurance is actually giving you.

Is it replacement cost, meaning that they would replace your photo booth with the exact same, brand new, equipment?

Or is it cash value, meaning that the insurance company is depreciating the value of your equipment year over year?

Either way, it's important that you ask your broker about how your property is protected. Keep in mind that depending on the option, your premium could also change.

iPad-based Salsa Photo Booth

 

Deductibles

The next thing you should ask your broker about is the deductibles.

How high are the deductibles that they're actually giving you?

Normally they'll give you options as well, so you can choose what works best for you. For example, if you want to save a little bit of money on your insurance you can simply increase the deductible because you're now taking on a bit of the risk yourself.

Maybe you can actually afford $1,000 or $2,500 in the event that something happens? That'll bring down your premium.

Liability Insurance

Liability insurance is probably the most important one that you could have because it protects you against being sued by third parties.

It also protects you from any negligence that you may have caused to another person.

Additionally, you want to make sure that your liability coverage covers your employees. That's why it's crucial to make sure that you ask your broker about who exactly is insured under your liability and where they're insured.

The last thing you want to do is travel to Puerto Rico or Hawaii and find out that those two places aren't included in your liability insurance.

How Much Should My Liability Cover?

Most venues are going to ask for at least one million dollars in coverage. Some may even ask for upwards of two to five million.

Like most things, it really depends on your area and your market.

Regardless, it's best to be prepared so that when the venue requests your certificate of liability, you're not scrambling at the last minute to get everything sorted out.

All Perils vs. Named Perils

All perils coverage is sometimes also referred to as broad form coverage. What it means is that your policy will cover you for absolutely everything unless it's specifically excluded in the policy wording.

Another type of coverage that's available is named perils, which is the complete opposite. It will only cover you for the items that are listed in your policy wording.

Obviously there's a big difference in the type of coverage that you're getting. Again, ask your broker what type of coverage they're offering you and what the differences are in price.


We hope this article will help you to have a better understanding of insurance terms and the importance of protecting yourself and your photo booth business!

Want to learn more tips and tricks on how to have a successful photo booth business?

Check out our other blog posts and our 26-Episode Video Series where you can hear from real PBSCO Photobooth owners on how they've led their businesses to success!