Of all the different media companies, Advertising & Marketing companies are likely to spend a lot of time tied up in litigation. At any given moment the reputation of both the agency and their clients are left hanging in the balance. Having the appropriate insurance program can help to let you keep your competitive edge, protect your company’s assets and at the same time preserve your relationships with all of your clients.
When you are responsible for creating advertising for a range of clients, your company is always susceptible to claims of defamation of character, libel, slander, right of publicity, outrageous conduct and causes emotional distress. In addition, being sued for creating unfair competition and of course trademark infringement is no surprise. Despite who you deal with, your company is always subject to suit for an ad that you have created.
Regardless of how hard you try, some clients will potentially try to hold you responsible for not achieving their sales goals. As long as you are creating advertising with the premise of helping to sell a product or service, you are going to be held responsible for failed results. Advertising insurance is designed to protect you from potentially devastating settlements and costs. Advertising insurance is a form of professional liability or E&O that will be there to cover your legal defense costs and keep you in business. It can also be used to cover things such as bodily injury and any property damage that occurs as result of the advertising content your company creates.
When the ability of your advertising agency to remain open for business hinges not only on your reputation, but your financial situation, you need to be fully covered by an appropriate advertising insurance policy.
How much will this insurance coast me?
The premium you will pay is in direct correlation to the class of business, location, claims experience and gross revenue. This is the basis your insurance carrier will determine the exposure that exists. In addition to a business specific application, an insurance company underwriter may request copies of standard contracts, a description of quality control procedures and documentation procedures, training procedures, etc.
Here are some steps you can take to mitigate claims:
- have a written contract with your client that spells out all the specifics of your arrangement
- make sure the noted contract is reviewed by council that is well versed in such arrangements
- Have quality control procedures in place and use internal and external audits to check them.
We will help you better control your level of risk and assist you in determining the correct amount of coverage needed.
In order for our team to begin working on your account, please download the form(s) below and forward a completed copy via email or fax. All submissions are reviewed within 24 hours, however if you need immediate assistance please contact us by phone or send an email to firstname.lastname@example.org