Q: Do advertising agencies need different insurance?
A: Yes and no. Generally speaking, ad agencies have the same basic portfolio of small business insurance as other industries. These coverages include:
- General Liability Insurance — coverage for slip-and-fall, defamation, and advertising injury lawsuits.
- Errors and Omissions Insurance — coverage for professional liability lawsuits over problems with your work.
- Property Insurance — coverage against loss, theft, and vandalism of your agency's property.
But here's the thing: though you may have the same type of insurance as an architect or doctor, you may need different amounts of coverage.
For example, the advertising injury lawsuit coverage in General Liability Insurance is crucial for ad agencies. It can protect you from the cost of defamation lawsuits, copyright infringement cases, and other legal problems common among ad agencies. You'll want to make sure your GL policy has enough advertising injury coverage to protect you from your increased risk exposure.
The amount or "limit" of your coverage is a critical part of finding the right coverage. For this reason, it's helpful to work with insurance agents that know the advertising industry. Knowledgeable agents can help ensure your policy is the right size for your risks and doesn't skimp on any important coverage areas.
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