Your clients in advertising, graphic design, and media services need small business insurance to keep the financial repercussions of lawsuits and property loss at bay. Knowing where their risk exposures lie allows you to connect your clients with the coverages that help their businesses thrive.
Different policies cover different risks that your advertising, graphic design, and media service clients often face. Each policy listed here is an important component of their business protection plan:
General Liability Insurance
Because third-party lawsuits over premises liability or property damage can be expensive, General Liability Insurance is a key coverage for most professionals whose offices are open to the public. A "third party" can be anyone who doesn't work for your client's agency, such as a customer or partner. If a customer claims they were injured on your client's property or suffered property damage because of something your client did, General Liability helps cover the cost of your client's legal fees.
Professional Liability / Errors and Omissions (E&O) Insurance
Professional Liability also covers third-party lawsuits, but it kicks in when your client's customer alleges they lost money because of your client's negligence. For example, say a customer claims the ads your client created violate a federal regulation and can't be used. They sue for what they spent on the services and the revenue they should have generated from a usable campaign. Professional Liability Insurance, also called Errors and Omissions Insurance, covers your client's legal fees - even if the claim is meritless.
Advertising professionals rely on their commercial space and their media equipment to serve their clients. Property Insurance can protect their business assets against loss or damage because of fire, vandalism, theft, or windstorms. It compensates your clients for the cost of replacing or repairing your client's property.
Workers' Compensation Insurance
Your advertising, graphic design, and media service clients may enjoy a relatively safe office environment, but that doesn't mean their employees won't experience work illnesses or injuries. For example, copywriters can easily develop carpal tunnel syndrome over time. Plus, many states require employers to carry Workers' Compensation Insurance, which covers employees' medical care and forgone wages when they develop occupational ailments.
Umbrella / Excess Liability Insurance
If a contract requires your client to carry more coverage than they normally do, suggest they invest in Excess Liability Insurance. This policy is a cost-effective way to bolster one of your client's other liability coverages. For example, if your client faces a judgment that exceeds their $1 million General Liability limits, they can make a claim on their Excess Liability policy to cover the difference. Umbrella Insurance is a type of excess insurance that extends coverage of multiple policies. Note: Neither Excess Liability nor Umbrella Insurance can be applied to Professional Liability Insurance policies.