Types of Insurance Coverage for Advertising Firms
Did you know that three out of four small businesses are underinsured? Unfortunately, understanding insurance can be difficult and not high on your priority list as a small business owner. The fact is you may not be able to ignore this aspect of your business.
Having adequate business insurance could mean that an unfortunate accident is merely an inconvenience rather than catastrophic. When you have proper coverage then you may be able to rest easy and grow your business.
Why Advertising Agencies Need Insurance
If you own a business, then you likely have inherent risks built in. One of the best ways to hedge yourself against risk is to obtain adequate insurance. As a media or advertising agency, you typically conduct most of your work on the computer and might think that you don't need traditional business insurance.
However, almost every business should plan for the worst. Covering your business with insurance can allow you to focus on your work and provide your clients with the level of attention they may be looking for.
Many advertising professionals assume that due to their type of work, they don't need business insurance. Unfortunately, without insurance coverage, your advertising business could be exposed to financial harm.
Who Needs Business Insurance?
Many small business owners think that because they’re small, they may not have to worry about getting sued. But anyone could get swept into a cyber-attack or other event. What would you do if your credit information or the personal information of your clients were exposed?
If that question caused you to take a deep breath, then you might want to think about cyber insurance. From solopreneurs and freelancers to large agencies with hundreds of employees, advertising and media businesses should consider insurance. Some examples include:
- Multimedia company
- Digital marketers
- Brand managers
- Advertising consultants
- Social media managers
- Web designers
The size, location and type of business can impact the amount of insurance you might need. However, most businesses may want to think about obtaining insurance, including advertising agencies.
Types of Advertising Agency Insurance You May Need
As a small business owner, you likely wear many hats. You not only provide customer service to your clients, but you may also be the head of your marketing, accounting and human resources departments. What happens if you make a mistake in one of these arenas?
Don't let an unfortunate incident ruin your hard work. Researching the many insurance options available to you can quickly become overwhelming and confusing.
Understanding the different types of insurance is one of the first steps towards making an educated decision that may be right for your advertising company.
1. General Liability Insurance
One of the most common types of insurance available to small business owners is commercial general liability insurance. It can protect your business from a variety of scenarios. This insurance helps cover your business from third-party bodily injury and third-party property damage.
It can also cover situations in which you might become involved in libel, slander or reputational harm such as an argument over creative differences gone wrong. If someone decides to sue you over digital property rights, you want to ensure you can be covered.
If you don't have this coverage, you might end up paying for lawyer fees out of pocket. You may not want to expose yourself or your business to accusations of copyright infringement or other defamation lawsuits.
2. Business Property Insurance
As you consider what types of insurance you might need as a small business owner, take some time to think about how much you've put into your business over the years. Physical items from your computers to cameras and even office supplies can be costly to replace if needed.
This is where business property insurance can help protect you. Items you may need to run your business can be covered to protect you from having to replace it out of pocket. What would you do if the office next to yours had a fire or if your space was impacted by a natural disaster?
If it would be difficult to replace your business equipment, then you may want to think about business property insurance. Some plans even replace the loss of income until your business returns to operating at full capacity or up to a time period stated in your policy.
3. Cyber Insurance
Cyber-attacks can happen to anyone. And your small advertising business is no exception. You may not want to protect only your business but also the personal information your clients have entrusted you with.
Do you save billing information for your retainer clients? Do you have contact information saved for potential clients? If so, you may want to protect your clients' and prospective clients’ trust in your business by covering your business with cyber insurance.
Cyber insurance can protect you from data breaches, network attacks and a variety of other technology-related attacks. Cyber-attacks and hackers don't focus solely on larger companies. They're counting on you not to have cyber security measures in place so that they can access your data.
4. Business Owners Policy
As you begin to research insurance policies you may soon realize that your business is unique and might look to obtain multiple types of insurance. With a Business Owners Policy, you can customize and bundle insurance plans for your needs.
Like one-stop shopping, bundling several policies can be more efficient than purchasing several individual policies. Our BOP offers businesses an insurance policy that can cover several common risks they could face. It includes general liability, business property and cyber-risk coverage.
FAQs to Ask Before You Purchase
You likely have more questions now that you see the risks involved with insuring your business. We've gathered some frequently asked questions here for you:
How Many Employees Should I Have Before I Get Workers' Comp?
Before you hire your first employee you might want to think about Workers' Compensation insurance. Unexpected accidents can happen to everybody and, without coverage, you can find yourself in a difficult position.
Don't think because your employees aren't lifting heavy equipment they can't get injured on the job. Having a policy in place can ensure you and your employees can be covered should you have medical expenses, need to replace lost wages or provide ongoing support with medical appointments.
You don't have to lift something heavy to hurt your back. Trips, falls, repetitive actions, and poor ergonomics can contribute to workplace injuries. If an employee claims a repetitive stress injury such as carpal tunnel syndrome, then you could be liable to take care of their medical bills and lost wages while they recover.
What Else Should I Consider Before I Purchase?
Before you decide on which policy will best protect your business there are a few more things you may want to consider.
First, take the time to assess what risks your business could face in a variety of different situations. Second, develop a plan to help minimize and protect your business from those risks. Finally, implement that plan.
Grow Your Small Business with Confidence
Running a small business might be the biggest pleasure of your working life. You get to build a company and work with great clients as you spend your days doing work you love, for yourself.
However, that also means you're responsible for every facet of your business – including protecting your advertising firm.
With insurance, you can focus your creative energy on your clients. Don't let choosing business insurance overwhelm you.
You can get a personalized quote or talk with a live agent here. We can help you protect your business, your employees and your business assets so you can grow your business with confidence.