Insurance for media and marketing professionals
Digital marketers, new media professionals, and media and marketing consultants all require liability insurance coverage. In our fast-paced online media and marketing world, you understand the importance of getting your work published as quickly as possible.
Despite how meticulous you are in your work, errors or mistakes can happen. When they do, you may be held legally responsible for any negligent actions or errors that cause one of your customers to suffer financial losses or damages. If a third-party lawsuit is brought against you accusing you of negligence, slander, libel, or breach of privacy, you may face extensive legal defence expenses and irreparable damage to your reputation whether the lawsuit has merit or not.
What is media and marketing insurance?
Unlike many other businesses that sell physical goods or services, media and marketing companies and independent consultants generate ideas, images, stories, and concepts offline and online for their customers. They strive to convey their customers’ core messages, thought leadership content, or convey a personal feeling to their targeted audiences.
As such, Canadian media and marketing professionals face many different risks, for example, third-party injuries or property damage lawsuits, and risks related to the services and advice they provide to their clients. Media and marketing insurance is a comprehensive package featuring different types of coverages designed to protect professionals in this industry, including:
What does it cover?
A customized media and marketing insurance policy may feature several types of coverage, including:
- Commercial General Liability (CGL) Insurance: CGL insurance is crucial for any business that has customers, business partners, or visitors such as a delivery person visiting your office. Also known as slip-and-fall insurance, it covers you from third-party bodily injuries or property damage should a customer or employee visit your office and suffer an injury on your property. For example, if you are sued for bodily injury damages by an injured visitor to your office, the cost of that lawsuit could be so expensive it may bankrupt your business. That’s why CGL coverage is vital: it provides you with coverage to defend yourself in court, any court-ordered settlement, and it pays for the injured party’s medical expenses.
- Errors and Omissions (E&O) Insurance: Also known as professional liability insurance, E&O coverage provides financial protection from losses due to negligence, errors, or failure to deliver a service. It protects you against costs associated with lawsuits that may threaten the survival of your business and severely damage your reputation if you are sued by one of your customers.
Common risks that media and marketing professionals face include:
- Missed campaign deadlines
- Publishing errors
- Copyright infringement
- Cyber Liability Insurance: If your firm’s computer systems are hacked or if an accidental data breach occurs, you could be sued for third-party damages by your customers. After all, it is your legal responsibility to safeguard your customers’ privacy, personal information, and financial data. Cyber liability coverage includes financial protection for the cost to repair your computing systems, losses due to a computing systems outage, legal advice, notifying your customers of a cyber-attack or data breach, and providing affected parties with credit monitoring services.
- Directors and Officers (D&O) Insurance: Also known as management liability insurance, D&O liability coverage is designed to protect directors and officers of marketing or media companies whether public or private from related to losses, indemnification, employee wrongful dismissal or discrimination claims and inaccurate disclosures. If you are held liable for allegations arising from breach of common law duties or fiduciary responsibilities to shareholders, negligence, or violations of provincial or federal laws, D&O coverage pays for your legal defence expenses.
- Legal Expense Insurance: As its name suggests, legal expense insurance provides you with financial support to retain legal counsel and get legal advice on a set of common business topics with an experienced lawyer.
How much does it cost?
The cost of a basic or standard media and marketing insurance policy is determined by insurance companies, and your premium is based on a multitude of factors, including:
- The industries and clients you serve and how many clients you have
- Your business’s size and location
- The type of services you provide
- How many employees are on your team (if applicable)
- Years of experience
- Your annual and projected revenues
- Your history of insurance claims
Most media and marketing professionals or firms purchase policies with between $2 million and $5 million of general liability coverage. What the appropriate level of coverage is for your business also depends on who your clients are, the value of the work you do for them, and the potential costs of litigation. Speak with one of our licensed brokers about the liability risks you face to determine what the right level of coverage is for you.
Risk management tips for media and marketing professionals
Mitigating the risks you face and keeping your annual premium low requires being proactive and taking action to minimize the chances of being sued. Though your risk management efforts may not prevent you from being subject to a third-party lawsuit, they can help reduce that threat and serve as proof in your legal defence that you did your due diligence to avoid such a situation. Here are a few steps you can take to do so:
- Open and transparent communication: Never underestimate the value of honest and regular communication with your customers. It’s essential to ensure your customers and employees or partners clearly understand their responsibilities, the costs associated with the work, and the deadlines.
- Maintain accurate records: Keep records of every conversation, meeting, chat, and email exchange between yourself and your customers. Regularly provide follow-up emails or written accounts of what was discussed, when, and what was agreed to so all concerned have documented insight into the project’s scope, the agreements made, or requests for changes to a project.
- Customer approvals: Always give your customers enough time to review any materials you create or provide to them. Ensure they approve of each step in a project by signing off on them and especially near or at the conclusion of a project.
- Ensure quality control: During and after every project, ensure you have at least two experienced professionals or colleagues thoroughly review all work before sending it to your customer or going public with the material. Have procedures to document who reviewed what and when and ensure any recommended changes are implemented.
Common claims scenarios
Frequently asked questions