Advertising Agency Insurance
Advertising Agency Insurance is essential for businesses that are operating as advertisers, as well as companies that need media and advertising coverage. This may include TV stations, radio stations, print publications etc. It protects them from legal, operational and financial risk so they can work without worrying about such events.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here.
Advertising agency insurance typically has the following features:
- General liability protection: This coverage can protect an advertising agency against lawsuits filed by others, including consumers who may have been attacked by a defective product or services they advertised or if they are sued for slander or defamation of character. Coverage may be included if an employee is injured while working on an account. It can also cover injuries to employees of another business due to negligence.
- Loss of income: Protection may also include loss of income to the business due to potential damage to or destruction of its facilities.
- Contractual obligations: This coverage protects the agency against an employer who may have obligations to pay for the employer’s liability insurance for its employees.
- Business interruption protection: Insurance may provide coverage of cover “for loss, expense or damages which are occasioned or suffered by any party because that party’s operations are interrupted during any day of the policy period”.
Business interruption coverage typically begins with the date your account is placed into force. Coverage will continue for the “whole period of the policy, subject to early termination” in cases where you can prove that there was no fault on your part that caused the interruption in business.
The central limit of advertising agency insurance that should be considered is the annual aggregate, which can be specified in the contract. It can cover “all sums which an insured becomes legally obligated to pay as damages because of bodily injury, property damage or personal injury”. This number specifies how much coverage will be available for all claims for a specific year. Because the policy is considered a commercial liability policy, it does not cover losses unrelated to personal injury or property damage.
Ways to Insure Your Advertising Agency
There are three possible ways to insure an advertising agency: through an insurance company, by directly purchasing insurance from the company or by purchasing a product known as “Partnership”, a hybrid type of insurance that combines insurance and naming rights. Those who purchase the partnership will access all features and coverage of an advertising agency and can name their agency. The advantages of this type of coverage are no renewal deadline, the ability to change the coverage and much less administrative work. This type of insurance may be challenging to find and costs much more than a standard form.
Advertising agency insurance may be able to cover legal fees and court costs in many cases and provide for jury awards if the case goes to trial. Either the insurance company or the policyholder can initiate lawsuit proceedings against another party or parties to compensation for damaged property or physical injuries. Damage to the business in lost earnings, physical damage, or pre-existing conditions may be covered in most cases. This type of insurance is necessary in all cases where the advertising agency has employees. It is not just a personal policy and should cover any other company representatives who work for the agency and other clients and projects that should be protected by law for legal and security reasons.
What Should Advertising Agency Insurance Cover?
Basic insurance coverage should cover all employees, contractors, third party suppliers, equipment and vehicles associated with the business for legal and security reasons. The insurance should cover employees while they are at work or travelling either to or from the worksite. It should also provide compensation if a client claims against the agency for lost business, which can often happen when a client feels that a company’s advertisement has misled them.
When choosing insurance for an advertising agency, customers should consider what types of claims may occur, how much coverage will be needed and whether the policy will provide what is needed. An advertising agency policy can be customised to meet your unique needs; there are no limitations on the type of coverage you will have. You can also change some of your policies to personal policies if you have more limited coverage. However, if something exceeds this coverage, you will need to contact your insurance company or purchase additional insurance for that specific event.
What Should I Consider When Purchasing Advertising Agency Insurance?
There are several things to consider for advertising agencies when selecting the best type of insurance for their business. The type of insurance you need will depend on the industry or your specialised fields. For example, if your company is in academic institutions or government agencies, you may need to purchase property insurance. If you work with automobiles, products liability is essential coverage for you. On the other hand, property insurance may not be required if your business does not use vehicles and owns any cars or equipment.
Read more about what kind of business insurance you need here.
Other useful links about business insurance:
Public Liability Insurance
Retail Insurance
Property Insurance
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