When running a marketing company, it is important to be aware of the possible claims that can be made against you, and what type of coverages you should have in your coverage portfolio to protect them. Since you’re providing a professional service, particularly one that makes claims, you could potentially face negligence claims. A professional liability policy can cover you and your business if your client claims that your business or you were negligent when providing your services. Imagine that your agency creates an ad that makes a promise about a product, but then it doesn’t perform in that manner. If consumers sue your client for false advertising, you could be found negligent as well. Another type of coverage you should consider is a general liability policy typically covers bodily injury, property damage, and third-party (e.g., customer or vendor) accidents. You also may need property coverage to cover your technology, building or other assets. In addition, we can review things like cyber liability coverages if you are creating content where you are collecting personal information. When you call into us for a quote at Keslar Insurance, we make sure to discuss all of this with you in detail, so you understand and are aware of everything you may be at risk for. We do our best to find the policy that is just right for you, with the most coverage and at the best price.
What are the insurance policies we recommend for Marketing Companies?
Business Owner’s Policy (BOP)
Worker’s Compensation
General Liability
Commercial Auto
Property Insurance
Professional Liability
Employment Practices Liability (EPLI)
Commercial Umbrella
Cyber Liability
Marketing Agencies & Creative Firms – Insurance FAQs
1. What types of insurance should a marketing agency carry?
Typical needs include:
- General Liability
- Professional Liability (E&O)
- Cyber Liability
- Commercial Property (if you lease office space)
- Workers’ Comp (if you have employees)
Optional: Media Liability, Employment Practices Liability, and Business Interruption
2. What is Professional Liability (E&O) for marketers?
It covers claims of negligence, misrepresentation, missed deadlines, copyright infringement, or errors in work—even if you didn’t make a mistake. If a campaign doesn’t perform or costs a client money, you could be sued.
3. What is Media Liability Insurance?
This protects you from lawsuits tied to defamation, slander, copyright violations, or advertising injury—especially relevant for digital, social media, and content creation firms.
4. Do I need Cyber Liability if I don’t handle e-commerce?
Yes. If you store client data, run cloud-based projects, or manage ad accounts, you’re exposed to phishing, hacks, ransomware, and data loss.
5. What if a client says our ad damaged their brand?
That’s where E&O and Media Liability step in. These policies help cover legal defense and settlements from alleged reputational harm or business loss.
6. What if we subcontract designers or developers?
You’re still on the hook. Contracts help, but you may be liable for their work. Ensure your policy includes coverage for subcontracted services, or require that they carry their own.
7. Do remote employees change our insurance needs?
Yes. You may need multi-state Workers’ Comp coverage and ensure your Cyber and E&O policies account for a distributed workforce and cloud tools.
8. Is Property Insurance necessary if we’re mostly digital?
Yes—if you own office equipment, photography gear, or furniture. It also covers damage to leased spaces or expensive gear used at shoots.
9. What if we’re sued for using stock imagery incorrectly?
Media Liability or E&O covers copyright issues—including licensing mistakes, music, photos, or brand assets used improperly.
10. What’s Employment Practices Liability (EPLI)?
It covers you if an employee sues for harassment, discrimination, or wrongful termination. It’s especially important for growing agencies or those with interns.
11. What’s the difference between General Liability and Professional Liability?
- General Liability = slip-and-fall or third-party property damage
- Professional Liability = client claims related to your work or advice
12. How can a marketing agency control insurance costs?
- Use clear contracts with clients and subs
- Limit access to sensitive data
- Maintain proper disclaimers and copyright licensing
- Work with a knowledgeable agent (like us) who understands the creative industry’s unique risks
