Advertising Agency Business Insurance

In the advertising and media industry, your business is regularly exposed to advertising injury liability claims related to the content you produce. That means an increased risk of everything from trademark infringement to invasion of privacy to false advertising.

Typically, commercial general liability insurance (CGL) covers these types of claims, which are rare for most small businesses. But for advertising agencies and their higher associated risk, they need a policy called media liability insurance. This advertising injury coverage will safeguard your business from potentially devastating lawsuits including:

• Slander or libel: You defame someone or another business through speech (slander) or writing or pictures (libel) with false statements.
• Violation of privacy: You make oral or written statements that misappropriate someone’s name or likeness, intrude on someone’s right to privacy, or disclose private facts.
• Unpermitted use of someone else's advertising themes or concepts: You misappropriate a firm’s intellectual property for your own purposes.
• Copyright infringement: You use, distribute, or display copyrighted work without the owner’s permission.

For a comprehensive risk management plan, advertising design agencies should consider including the following types of coverage beyond their general liability policy and workers' comp coverage:

• Business interruption insurance: Should your business be forced to close temporarily, this policy will help pay for employee wages and other operating expenses until it can reopen. It's sometimes included with your commercial property insurance or business owner's policy.
• Social media coverage: This type of insurance handles legal costs related to your agency's social media account, such as an accusation of libel or invasion of privacy. Check with an agent to ensure it's included in your media liability insurance policy.
• Hired and non-owned auto (HNOA) insurance: Advertising professionals who drive their own car, a leased car, or a rented vehicle to meet clients should carry HNOA, since your personal auto insurance won't cover business use. HNOA provides liability coverage for vehicles used but not owned by your business.