Advertising Agency Insurance

What is advertising agency insurance?

Advertising agency insurance is business insurance designed to protect creative agencies from the unique risks they face in an idea-driven industry. Depending on your policy and the coverages you choose, it can help with claims related to defamation, copyright infringement, cybersecurity threats, business disruptions, and more.

Having the right insurance for your marketing or advertising agency lets you focus on what you do best — being creative. Start a quote online to get the flexible coverage your business needs or call to speak with an experienced agent today.

Why is advertising agency insurance important?

Marketing and advertising agencies need insurance to protect against legal claims and other covered events that could disrupt operations or lead to lost revenue. Professional mistakes and cyber attacks are just a few risks agencies face when managing complex client projects.

For example, say your team leaves out a required disclosure in an ad campaign for a pharmaceutical company, and the Federal Trade Commission (FTC) issues a fine. Your client might hold you responsible, and one mistake could balloon into an expensive error.

Ad agency insurance can cover the costs to defend yourself in court and pay for judgments or settlements so you can get back to work.

Who needs advertising agency insurance?

Any firm that provides creative services to clients can benefit from ad agency insurance, including:

• Marketing agencies
• Social media firms
• Digital marketing agencies
• Content marketing firms
• Public relations companies

Agencies can be sole proprietors who hire contract workers to help execute projects and campaigns, or large LLCs with a hundred full-time staffers. No matter how your agency is structured, Progressive Commercial specialists can help customize an insurance policy that's right for you.

Types of advertising agency insurance

Creative agencies interact with clients regularly, from providing advice and services to hosting them on-site for pitch meetings and presentations. We offer a range of coverages to keep things running smoothly. Here are some types of insurance to consider when building your policy:

• General liability insurance: Helps if someone outside your company experiences bodily injury or property damage because of your business. It also includes personal and advertising injury, which covers claims of libel, slander, invasion of privacy, product misrepresentation, and false advertising.
• Commercial property coverage: Can pay to repair or replace physical assets like computers, lighting, cameras, and props if they're stolen, vandalized, or damaged in a covered event. This coverage can also include business interruption insurance, which pays for expenses and lost income if you're forced to shut down operations temporarily.
• Business owners policy (BOP): Combines liability, commercial property, and additional protections in one convenient package. Its  business property coverage protects your buildings, equipment, and other assets from damage or theft. A BOP also includes personal and advertising injury insurance, which is important for creative agencies.
• Professional liability insurance: Covers errors and omissions by you and your employees. When you work with clients, any mistake or perceived error could result in a claim against your agency. Professional liability can help pay for legal costs for issues like copyright infringement, misrepresentation, failure to deliver agreed-upon services, and missed deadlines.
• Cyber insurance: Covers digital threats that compromise your clients' data, damage your network, and bring operations to a halt. Cyber coverage helps with direct and third-party losses, including data recovery, damaged software, lost income, and legal fees.
• Workers' compensation: If you have employees, most states require this coverage in case workers get sick or injured on the job. You may even need workers' comp for 1099 contractors. Keep in mind that, although a BOP or general liability policy provides broad insurance protection for your business, those policies won't cover injuries to your staffers.

How much does advertising agency business insurance cost?

No two ad agencies are alike, and your monthly premium will reflect what makes yours unique. The cost of advertising agency business insurance is based on the following factors:

• Industry risks
• Business location
• Value of property and equipment
• Number of employees
• Time in business
• Coverage limits
• Deductibles
• Claims history

Learn more about how business insurance cost is calculated.

Get advertising agency insurance through Progressive Commercial

In the fast-paced advertising world, you don't have time to get sidelined by a cyber threat, campaign error, or client dispute. At Progressive Commercial, our insurance experts will help you choose the coverages your agency can't do without — and recommend others that'll protect your business even further.