business model and insurance

[Deniz Turkmen]

I've been thinking about starting a wedding video business and was wondering what a good business model would be. I figure starting a LLC would be better than a sole proprietorship due to the protection it provides. What would be best suited for event video?

Also, what type of insurance would you guys suggest carrying?

Thanks

[Don Bloom]

Not knowing your particulars I would strongly advise you to meet with a competent attorney to decide which way would be best for you.

As for insurance, here I can only tell you what I carry and most everyone I know in the business carries something about the same.
GEAR-FULLY INSURED No questions asked. Full replacement value!
LIABILITY- 1 MILLION Buckaroos!

If Aunt TIlly says she tripped on your tripod at the reception (and you can't prove she didn't) you could have a mighty big problem. I know 1 guy here that went out of business because of a similar type deal and he didn't have enough liability. By the time he would have appealed, the lawyers fees would have eaten up anything he would have gained. His 10 year career went down the tubes.
First rule of business; PROTECT THYSELF!

Don

[Jon Omiatek]

<<<-- Originally posted by Don Bloom :
First rule of business; PROTECT THYSELF!

Don -->>>

If you don't mind, how much a year does that cost you?

[Josh Hibbard]

When you say "Gear Fully insured" does that include accidental damage? (like if you trip and your camera goes down too)

Cause I couldnt find that, my insurance only covers if someone else breaks it or steals it.

[Jon Omiatek]

<<<-- Originally posted by Josh Hibbard : When you say "Gear Fully insured" does that include accidental damage? (like if you trip and your camera goes down too)

Cause I couldnt find that, my insurance only covers if someone else breaks it or steals it. -->>>

accidental damage? If you drop it? I would blame it on the customer or a theif - LOL

Jon

[Don Bloom]

Cost is about $400 per year-thats for the liability and about $30K in gear
As far as accidential damage-why that no good dirty scoundrel--he knocked my camera over and ran!!!!!!

No not really. Acts of God, war and the usal things like that aren't covered-no policy will. Theft, damage on the job or in the car-NO, your auto policy probably won't cover the gear if you use it to make money. They would cover the damage to your car but the gear---well you'd be SOL. As for accidential damage I think they call it incedential damage but whatever-thats a tricky subject. Depends. You're walking backwards down the sidewalk covering a news story you trip camera goes BOOM, it might be covered. You're walking down the sidewalk, trip over something because you're checking out the good lookin' girl walking the other way, cam goes boom, probably not. How do they know? What were you shooting? That's kind of a grey area-just gotta be careful out there!

Don B

[Deniz Turkmen]

I plan on speaking with an attorney before making any moves. I'm just trying to do some research before I go.

What about errors and omission insurance? Would it do any good for an event videographer?

[Don Bloom]

If you word your contract properly you shouldn't need E&O.

Tell the lawyer want you want to do and he/she should be ab;e to word it right for you.

See, here's the thing. It a wedding or other event like one, things happen and they many times happen fast. I don't want to have to "depend" on insurance to cover me if something is missed so by wording the cluase into the contract when the client signs it it acknowledges that they understand you will do everything in your power to capture everything BUT should something be missed you are not liable. This goes from being in the bathroom when something unexpected happens to being blocked out by either a professional or non-professional still photog.

Of course thats just me-some people won't shoot with out E&O.
Just my .03 cents worth

Don

[Patrick Moreau]

We go with the same liability and about 20K in gear for $800 CDN a year. That does cover accidental damage by us, as well as something like rain damage while being stored at home. It doesn't cover manufacturers defects basically. Very good option, in my opinion, although I haven't needed ot make a claim yet.

Patrick

[Deniz Turkmen]

Thanks for your replies. I'm 23 and this is the first business I'm starting, so I want to make sure I do it right from the beginning. I appreciate the knowledge from seasoned videographers like yourselves.

What type of clauses would be the most important to include in a wedding contract?

Thanks

[Don Bloom]

I live by Murphys Law and so does my lawyer. You know, If it can go wrong, it will!
If you search thru the various forums you'll find all kinds of stuff relating to contracts-some are even on google.

Take what you feel you need and give it to you lawyer and let them clean it up-put in what you feel you would need to cover yourself in most situations-there's no way to forsee EVERYTHING, but if you can cover 99.9% of your bases you should be fine, otherwise your contract could be 10 pages. :-)

I would include things like you're not responsible nor are you to be penalized for people, professional or not blocking your shot, acts of God, war or automobile accidents, or uncooperative venues or participants. Also make your REFUND policy abundantly clear-don't mince words on that one.I include the time my contract ends and the charge and form of payment for exceeding that. I also include a clause that defines the editing schedule and that I have artistic control of the edit (keeps them from wanting to sit with you while you edit) I also include my REedit clause, why I will do a re-edit at no charge and what the charges are for re-editing.
The list can go on and on-the contract is for your protection but also for theirs as their ARE people out there that take the money and run. But mostly its for you so you don't end up dropping your shorts.
If you go thru some of the threads in DVinfonet and some of the other forums you'll read some of the horror stories and should be able to come up with the ideas to cover yourself. Then let the lawyer put it into legal language.

HTHs
Don