Professional Photographers - Scam Alert!
In the last week I had two clients call having been scammed. This is the scam - photographer is contacted by and production broker stating that they will send the photographer a $5,000 check. The photographer is to keep $1,000 and Paypal (using Paypal Friends & Family) the remaining $4,000 to a production company handling the make-up, hair, etc. The photographer will receive an additional $1,000 after the shoot. You guessed the original $5,000 check bounces. HEADS UP!!
The vast majority of professional photographers who have insurance are insured under a Business Owners Policy (BOP). The language in the BOP excludes coverage for this situation. The policy exclusion language reads, "We will not pay for loss or damage caused by or resulting from any of the following: False Pretense - Voluntary parting with any property by you or anyone to whom you have entrusted the property if introduced to do so by fraudulent scheme, trick, device or false pretense." It goes on to say that money (currency, coins, bank notes, traveler's check, registered checks and money orders) and securities are considered property. Therefore, the BOP insurance policy will not cover the damages you as a professional photographer suffer from the scam.
Stay informed. Stay aware.
Thanks for reading.
This article is not a guarantee of coverage. Each policy has different language and coverage varies from policy to policy. Please read your policy for coverage and coverage exclusions and limitations.