You’ve put countless hours into building your advertising agency from the ground up. Those late nights in the office preparing client pitches are all worth it because you care deeply about your company. With a great commercial space and a skilled staff in place, your campaigns are really starting to take off. Your growth is on track for the year and you even have promising clients in the pipeline.
Except without business insurance for advertising agencies, one lawsuit or accident could drain your finances and sully your reputation. Here are just four reasons your company needs coverage.
Competitor sues you for copyright infringement
Let’s say you just rolled out a new regional ad campaign. The client is happy with your work, and the general reception seems positive. That is until a competitor slaps you with a lawsuit alleging your campaign is similar to one they released last year. General liability insurance is a safety net for copyright infringement, misappropriation of advertising ideas, and more.
A client sues you, alleging fraud
Advertising agencies sometimes face lawsuits over their services rendered. For example, rideshare giant Uber recently sued Fetch Media Ltd for fraud. The plaintiff alleged the advertising firm billed them for fake clicks and attributions. Uber pays Fetch whenever a customer downloads their app after seeing an ad, but believe the agency was overbilling.
If a client or partner alleges your services or advice caused them a financial loss, they can sue you for damages. Professional liability insurance will cover these legal fees and settlements.
Your SMB is the target of a cyberattack
Believe it or not, even small- and medium-sized businesses make it onto hackers radars. In fact, about half of cyberattacks specifically target SMBs. Chances are, you’re sitting on at least some information that’s valuable to cybercriminals. Companies of all sizes need to uphold cybersecurity measures against hacks and data breaches.
Recently, advertising giant WPP faced a ransomware attack. The hackers demanded bitcoin payment in exchange for freeing the computers they had “taken hostage.” However, sometimes attacks like these run deeper than they first appear. The fallout can be devastating for your bottom line and reputation.
Cyber insurance exists to mitigate the fallout so your ad agency can recover if a cyberattack does occur. With so much of modern business being online, it’s an important policy to consider.
You meet with clients in your commercial space
The conference room is all set up for the big presentation—today you’re meeting clients on your turf. Hopefully, the biggest mishap of the day is a hiccup with the projector. But did you know you could be financially liable if visitors sustain any injuries or property damage on your premises? A general liability insurance policy also protects against claims of non-professional negligence. It’s often a requirement for renting or financing a commercial space, too.
With business insurance for advertising agencies as a safety net, you can focus on client campaigns with confidence. Compare policy quotes for free with CoverHound!