How much does media business insurance cost?

Media and advertising businesses spend an average of $33 per month, or $394 per year, for general liability insurance.

Advertising agencies, graphic designers, social media companies, and other media professionals may need this coverage in order to sign a commercial lease, get licensed, or work with certain clients.

General liability insurance covers legal costs when a third party (someone outside your company) files a lawsuit over property damage or a bodily injury.

For example, a client might trip and fall on a loose rug at your office. Or, an employee may accidentally drop and damage a client's laptop. If they file a lawsuit, a general liability policy would help pay for your legal costs.

This is the average general liability insurance policy for media businesses that buy from TechInsurance:

Premium: $33 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500 per month

The cost of general liability insurance depends on several factors, including the policy limits and deductible you choose. Insurance providers will also consider your type of business, the size of your business, and any additional insured endorsements you may have.

Among media and advertising agencies that purchase general liability insurance with TechInsurance, 46% pay less than $30 per month for general liability coverage. Another 38% pay between $30 and $60 per month.

Your policy limits, location, and income for your business will all factor into the cost of your premiums. You can help reduce your cost to an amount that better fits the budget of your media company by selecting either lower coverage limits or a higher deductible.

The majority of media business owners (84%) choose a general liability insurance policy with a $1 million per-occurrence limit and a $2 million aggregate limit.

The specific types of business risks at your media company are a major factor when determining your insurance costs.

That might include:

• Whether you have a storefront
• The amount of foot traffic
• Interactions with customer property
• The claims history of others in your profession
• Type of professional services provided

To some extent, you can predict how much you'll pay for insurance by looking at costs for similar businesses. On average, influencers, YouTubers, bloggers, and podcasters pay a lower rate of $29 per month for a general liability insurance policy. Whereas, broadcasters pay a higher rate of $46 per month.

Below, you can see how much different small media business owners pay for general liability coverage:

Small, low-risk media businesses may be eligible for a business owner’s policy (BOP), which has an average cost of $56 per month or $670 annually.

A business owner's policy bundles general liability coverage with commercial property insurance at a lower rate than buying these policies separately.

It protects against the most common liability and property lawsuits, and helps your media and advertising agency recover from a fire, burglary, or other property loss.

This is the average business owner's policy for media and advertising professionals who buy from TechInsurance:

Premium: $56 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

You can add business interruption insurance to a BOP to protect against the costs of a temporary shutdown tied to a covered property claim.

For example, this policy would help pay for employee wages and the cost of renting a temporary storefront if your digital marketing agency or PR agency is closed for renovation after a fire. Not only will this coverage allow you to keep serving clients, but it can help you avoid losses related to destroyed business equipment.

The cost of a business owner's policy mostly depends on the value of your business property. Other factors, such as your business operations and industry risks, can also affect your premium.

Fortunately, LLCs and other media businesses don't have to pay a lot for a BOP. Among media and advertising companies that buy with TechInsurance, 42% pay less than $50 per month for a business owner's policy. And 75% pay less than $100 per month.

Factors such as your business income, policy limits, and location affect your insurance costs. By choosing lower coverage limits or a higher deductible, you can reduce your premium to an amount that fits your media company's budget.

Media and advertising professionals pay an average premium of $78 per month, or $930 annually, for media liability insurance. This policy is also referred to as professional liability insurance or errors and omissions insurance.

Media liability insurance covers legal costs related to accusations of professional negligence, such as late work, mistakes or oversights, and breach of contract.

For example, an advertising agency could face a lawsuit for forgetting to include a client logo in a digital ad or running an unapproved ad. Or, a social media company could be sued over a missed deadline that resulted in decreased client revenue.

A media liability insurance policy also pays for advertising injuries, including libel and slander. This coverage protects against allegations that your media content caused emotional distress due to defamation or similar liability claims.

Below is the average media liability coverage for media and advertising companies that buy from TechInsurance:

Insurance premium: $78 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Media and advertising professionals may opt for technology professional liability insurance, which bundles professional liability insurance with cyber insurance.

This policy not only covers accusations of negligence, but also data breaches that affect a digital agency's or client's operations. It is also commonly referred to as technology errors and omissions insurance, or tech E&O.

The cost of media liability insurance depends on factors such as the policy limits you choose, your line of work, and your claims history.

Among media businesses that purchase media liability insurance coverage with TechInsurance, over a quarter (28%) can expect to pay under $50 per month. Another 34% spend, on average, between $50 and $100 on their media liability policy.

The cost of media liability insurance is directly related to your risk of being sued over your work performance, such as harmful advice that results in financial loss for your client.

Most media and advertising professionals (70%) choose a media liability insurance policy with a $1 million per-occurrence limit and a $1 million aggregate limit. The average deductible is $1,000.

You may want to choose higher limits if:

• Clients depend on your expert advice to increase profits
• You recommend strategy or marketing plans to your clients
  
• A delay or mistake on your part will impact clients’ finances in any way

Your profession's risk level of getting sued over work performance, negligence, or invasion of privacy is a key factor in determining your media liability insurance costs.

This includes your chances of facing a lawsuit over:

• Copyright infringement
• Slander or libel
• Trademark infringement
• Plagiarism or intellectual property infringement

You can get a good idea of how much you'll have to pay for insurance coverage by looking at the premiums for similar businesses.

For instance, graphic designers pay a cheaper rate of $70 per month, on average, for a media liability insurance policy, while publishers with printing pay a more expensive rate of $181 per month.

Below are the average costs of how much different media and advertising businesses pay for media liability coverage:

On average, media businesses pay $43 per month for workers' compensation insurance, or an annual premium of $519.

State laws determine when you need workers' comp. In most states, you need it as soon as you hire your first employee. Only Texas and South Dakota do not have requirements for workers' comp, but even in areas where it isn't required, it's still recommended.

Workers' compensation coverage pays for medical expenses and provides disability benefits if you or an employee suffers an injury on the job, or develops an occupational disease.

For instance, if a graphic designer develops carpal tunnel, this policy would pay for their doctor appointments, treatments, and any other medical costs. It also supplies part of the income they miss out on while they're recovering and unable to work.

Most workers' compensation policies include employer's liability insurance. This type of insurance helps pay for legal defense costs related to workplace injuries.

Though sole proprietors and independent contractors aren't often required to carry workers' comp, it's still a good idea to buy this coverage. If you're injured on the job, your health insurance plan will likely deny the claim, leaving you with hefty out-of-pocket medical bills and significant financial loss.

The chance of an injury while on-the-job is the biggest factor in determining workers' compensation insurance premiums. Media and advertising businesses that have a higher risk of injury should expect to pay more.

As you can see, over half (57%) of media professionals pay less than $50 per month for a workers' compensation policy. And 83% pay $100 or less per month for coverage.

Insurance companies will take into account the number of employees you have, their occupational risks, and your claims history when calculating the cost of workers' comp.

Advertising and media companies spend an average of $108 per month, or $1,295 annually, on cyber insurance. Also known as cyber liability insurance or cybersecurity insurance, this policy helps pay for the cost of complying with your state's data breach laws.

A cyber insurance policy covers expenses related to a data breach or cyberattack, including legal fees and customer notification costs. It is especially crucial for online media businesses that store personal customer information, such as credit card numbers or phone numbers.

The cost of cyber insurance primarily depends on the amount of sensitive information handled by your media or advertising agency.

Media professionals spend an average of $250 per month, or $2,996 per year, on commercial auto insurance.

Most states require this coverage for vehicles owned by a business, including cars or vans. If you get into an accident, it can help pay for medical expenses, property repairs, and legal fees. It also covers vehicle theft and vandalism, in case your business vehicle is stolen or damaged.

Keep in mind that sole proprietors and independent contractors who drive their own vehicle for work will need extra coverage as well. Your personal auto policy won't cover work-related accidents, so you'll want to consider buying hired and non-owned auto insurance (HNOA).

HNOA provides liability coverage for personal, leased, and rented vehicles driven for work purposes.

Insurance companies consider many factors when determining commercial auto insurance costs. That includes your employees' driving records, policy limits and deductibles, the number of vehicles you own and their value, and the coverage options you choose.