Advertising Agency Insurance

As an advertising agency, you put a huge amount of care and dedication into the campaigns you create for your clients. Because, for any agency, building long-term client partnerships is how you succeed.

What is Covered by an Advertising Agency Insurance policy

An advertising agency insurance policy typically covers a range of risks that are unique to an ad agency’s operations. These include potential liabilities related to client contracts, infringement claims raised by competitors or third parties over intellectual property rights, and the financial impact of damages caused due to errors and omissions in professional services provided.

1. General liability: This type of insurance provides coverage for claims related to bodily injury or property damage caused by your advertising agency to a third party.

2. Professional liability: Also known as errors and omissions coverage, is designed to protect your agency from any claims of negligence or mistakes that cause harm to a client. This type of policy can help provide financial protection in the event of a lawsuit or other legal action taken against you.

3. Cyber liability: A type of coverage that safeguards your agency from claims related to data breaches, cyber attacks, and other online security threats. With this protection in place, you can rest assured knowing that your business is protected against any potential losses or damages resulting from these types of incidents.

4. Property damage: This insurance provides coverage for any damage to your agency’s physical property, including office buildings, furniture, and equipment. It can help protect you from financial loss due to unexpected events such as fire or theft.

5. Business interruption: This coverage can provide financial assistance if your business is temporarily shut down due to a covered event, such as a natural disaster.

6. Employer Liability Insurance: Employers are responsible for the health and safety of their employees while they are at work. Your employees may be injured at work or they, or your former employees, may become ill as a result of their work while in your employment. They might try to claim compensation from you if they believe you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 ensures that you have at least a minimum level of insurance cover against any such claims. Employers’ liability insurance will enable you to meet the cost of compensation for your employees’ injuries or illness whether they are caused on or off site. However, any injuries and illness relating to motor accidents that occur while your employees are working for you may be covered separately by your motor insurance.

7. Employment Practices Liability: There are very good reasons for businesses of all sizes to consider taking out specific insurance to cover the potential costs of employment practices actions. Today employees are more litigious than ever. In a world of no-win no-fee legal representation, employment tribunal cases are now in the hundreds of thousands each year. And that’s just the cases that make it to a tribunal instead of being settled out of court.

Cases are getting more expensive as award caps increase annually, and there is no cap at all in discrimination cases. On top of any awards there are defence costs of course, including the employee’s costs if the company loses. Developing legislation means that there’s a broad range of potential actions to consider including:

• Wrongful dismissal or termination
• Harassment or discrimination on the basis of sex, race or religion
• Employment-related libel, slander or defamation
• Invasion of privacy
• Wrongful failure to employ or promote and retaliation (where the employee believes that raising a complaint has led to their employer discriminating against them).