Whether you are a new advertising company or an established business, you need to make sure you have the optimal levels of protection in place to protect your company and your own personal assets. Here, we explain the best types of insurance you can buy for an advertising company and summarize what each provides you with coverage for.
While there is technically no such thing as having too much insurance, you need to balance the budget carefully with your exposure to any risks. After all, the primary purpose of insurance is to make sure you are protected financially should an event occur that results in legal action or your business being unable to operate as normal. Here are the different options for Advertising company insurance.
#1 Business Owner Policy
Also referred to as a BOP, this is a combination of insurance policies that many insurance providers will offer together as a package. In most cases, it combines business property and general liability insurance. Both of which are needed for any advertising company, regardless of the media or platforms you operate on.
#2 Liability Coverage for Advertising Companies
Buying liability coverage for an advertising company is just like buying coffee for a coffeeshop. It is a fundamental element of your business, and you will probably need to consider buying more coverage that is provided by any of the standard professional insurance policies.
When you buy professional indemnity coverage for an advertising business, you should speak with a commercial insurance agent about the risks you face and the work you do. If you manage corporate accounts, then you would probably need to buy a greater level of coverage than an advertising business that managed the needs of smaller companies.
General Liability, Professional Liability, and Product Liability coverage are all types of insurance an advertising company will need to buy.
#3 Employee-related Insurance for Advertising Companies
Like so many others in your industry, you probably have a team of staff that supports your business and your clients. As a state requirement, you will need to have Compensation Coverage in place, just in case a member of your team is injured at work or develops a work-related illness.
Depending on the size of your business, you may have many employee benefits to administer. You can buy advertising agency insurance specifically for your employee benefits administration liabilities. So, should an error occur with any of the admin for their insurance, you have financial protection in case of any legal action.
The other type of employee-related insurance that is sometimes bought by advertising agencies is Employment Practices Liability Coverage. This is not something that is usually covered under a general liability policy, and it can protect you financially should a member of your team decide to sue you for discrimination, harassment, etc.
#4 Commercial Auto Insurance
This only applies to advertising companies who use a vehicle for work-related reasons. For most companies of your nature, traveling to visit clients is often part and parcel of the work you do. If you or any of your team drive to see your customers, then you will need to buy a commercial auto insurance policy.
#5 Cyber Liability Coverage
As an advertising company, most of the work you do will be online. Given the sensitive nature of the information you send, receive, and store about your clients, you should consider buying cyber insurance for your agency. If your systems and information were to become compromised, it is the company’s responsibility to put things right. When you consider the cost of PR, ongoing credit monitoring services for any potentially impacted clients, any lawsuits and associated settlements; not to mention the equipment that might need replacing, you can appreciate just how costly a security breach could be.
Cyber liability insurance will give you coverage for any financial losses resulting from this type of security event. Typically, this will include the cost of PR, credit monitoring, the cost of replacing any damaged equipment or software, legal defense costs, settlement costs, and more. You can get first-party and third-party coverage, so it’s important to check what is and is not included by looking at the ‘definitions’ section of your policy terms.
Whether you need to get a quote today for a renewal of your advertising business insurance or you want to find out the cost of buying insurance for a new business; talking with a commercial insurance agent who knows and understands the insurance marketplace is the best way to buy coverage for your business.
They can tell you the cost of buying insurance for your advertising business, and often provide practical advice about different levels of coverage you should be looking at. They can save you time, and in some cases, they will be able to save you money as well.