Digital marketing insurance
From website design to SEO to social media campaigns, your clients rely on your expertise to make their brands relevant and profitable in the digital space. If work or guidance fails to produce to their expectations and/or results in a loss of revenue, they may choose to pursue litigation against your agency. Digital marketing/advertising consultants insurance brokered by ALIGNED is designed to protect digital marketing companies of all sizes from the liability and business risks you face.
How do you do digital marketing insurance?
A common insurance policy for digital marketing agencies has commercial general liability insurance. Otherwise known as CGL insurance, it’s a standard policy coverage in most commercial insurance packages. It protects businesses against third-party bodily injury claims, property damage, and other primary business risks. This includes slip-and-fall accidents and libel and slander lawsuits.
Cyber liability insurance is also essential since digital marketing is done online. It covers customer notification costs, data restoration, fraud monitoring costs, data breach lawsuits, and other cyberattacks.
A digital marketing agency also needs errors and omissions insurance (professional liability insurance). It covers your agency for any missed deadlines, failed digital marketing campaigns, errors and oversights, and other work-related errors or omissions.
Do marketers need insurance?
All businesses should have comprehensive insurance up to the limit they want coverage for. Digital marketers help their clients run campaigns, improve their websites, write blogs, and generate more customers. Not only does it involve using specific tools and technology, but it also involves providing professional advice on the client’s marketing strategy.
Your agency aims to satisfy your clients with excellent service and results, but unexpected events can cause challenges for your business. Whether it’s a customer complaint or damage to your digital marketing office and equipment, these incidents could derail your business’s success and cause financial loss. Insurance mitigates some of the financial risks by helping you with expenses like legal defence, medical, and settlement awards. It also helps with recovery, repairs, and replacements of equipment and other property in the event of a fire, flood, theft, vandalism, or windstorm.
You can determine the amount of insurance you need by looking at the size of your agency, the number of employees you have, the service and equipment you have, and the location of your agency.
Potential Liability Scenarios Digital Marketing Consultants Insurance Can Shield You From
The following scenarios that digital marketing consultants commonly face can leave your business exposed to liability:
- Your advice or campaign strategy doesn’t deliver the anticipated metrics that a client claims you guaranteed
- A social media campaign backfires and results in negative sentiment/backlash against your client who experiences a loss in sales
- A website your team designs or marketing assets (e.g. logos, infographics, video or copy) you’ve created are alleged to infringe on someone else’s copyrighted or trademarked property
- Deliverables are not submitted by a deadline which causes a product launch delay and lost sales
- A staff member visits a malicious site which leads to a breach of your system and either exposes sensitive information or gets you locked out of your data
- A client comes to your office and slips on a wet floor, causing an injury
The liability insurance coverages that are typically included in a digital marketing insurance portfolio can help mitigate your legal liabilities in the above scenarios by providing you with coverage for:
- Lawyer’s fees
- Defence costs
- Out-of-court settlements
- Judgements against your business
The next section gives brief descriptions of those liability insurance coverages and links to each product page.
Digital Marketing Agency Consultants Insurance – What’s Covered?
The following insurance coverages are customizable as is your digital marketing professionals insurance policy. These are the coverages we recommend that address the risks faced by digital marketing firms:
Professional & Media Liability Insurance can provide professional liability insurance for marketing consultant from allegations of professional negligence, incompetence, breach of contract, errors and omissions that a client believes led to their losses.
Commercial General Liability Insurance is standard liability coverage for all marketing consulting businesses and can cover your legal costs for lawsuits alleging personal injury, property damage, false advertising and libel/slander.
Property Insurance can cover your company from losses in case perils such as fires, flooding, windstorms, break-ins or other named perils damage or destroy your building and/or the contents inside. You may also want to consider the following business property insurance extensions:
- Business Interruption coverage which reimburses your company for income lost due to an insured peril; and
- Extra Expense coverage for the costs of setting up a temporary business location following an insured peril.
Cyber Liability & Privacy Insurance can protect business against the costs of a cyber breach including third-party losses, ransomware demands and the costs of repairing systems and data. It can also protect you from liability associated with a breach of private and/or personal information you hold, have access to and/or use while providing services to your clients.
Commercial Auto Insurance / Commercial Vehicle Insurance for vehicles used by you and your marketing consultants to get to client meetings or photoshoots, for example. Personal auto insurance will not cover you for an accident that occurred when a vehicle was being used for work purposes.
Get ALIGNED with a Commercial Insurance Expert Who Will Advocate for You
Let the commercial insurance professionals at ALIGNED save you time, money and stress. We are your advocate to get you exactly the professional liability insurance policy you need at competitive rates. Contact an ALIGNED advocate to discuss how a digital marketing consultancy insurance can help protect your business and minimize risks. Use our online tool to get a quote on digital marketing agency insurance in minutes.