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What Insurance does a Digital or Creative Agency need?

The work environment in any Digital or Creative Agency is finely balanced, and the last thing you need in this space is unnecessary stress. With billions of marketing messages being pushed out each day, it’s no surprise that mistakes are occasionally made. As the great Jazz saxophonist Coleman Hawkins once said,

‘If you don’t make mistakes you are not trying hard enough’.

Eggar Forrester Creative can help protect your digital or creative agency in case that should happen! We pride ourselves on being able to provide the most up to date package of insurance for companies working in the digital media space, with the myriad complexities that it brings.

 

What types of insurance do Digital and Creative Agencies need?

One of the benefits of having a specialist broker is they can advise on what you need based on their expertise and information you provide about the nature of your agency.  This can be more beneficial than approaching an insurer directly as it will then be up to you to tell the insurer what you need.  What if you don’t know what you need?  This is where many companies can fall into trouble as they presume they are covered when they are not, or did not realise there was cover available to protect them from certain scenarios. Here is a list of the types of insurance digital and creative agencies should consider:

 

Professional Indemnity Insurance for Digital and Creative Agencies

Professional Indemnity or ‘PI’ will cover you in the case of negligence; where infringements have been made, confidentiality has been breached, or regulations have been flouted. One of the most common myths in digital circles is the idea that you won’t need insurance because you work with a contract. Contracts don’t alleviate you from liability, rather they lay the foundations of what duties are expected of both parties.  Insurance steps in when those duties come into question.

What is Professional indemnity insurance?

Despite how professional and experienced you may be, there is always a risk that yourself or a team member makes a mistake. It’s your job to come up with new, controversial and cutting-edge ideas, and with that, there is an element of risk. If a client proposes that your service was not adequate, perhaps your design was not what they had in mind or they found your advice misleading, professional indemnity insurance will cover the costs involved with defending the claim. This is alongside any compensation paid to your client if it is found that you are liable.  You may also find that clients insist you have PI, so having this cover can help you win business.

 

Media Liability Insurance for Digital Agencies

The media industry is fast-paced and changing. Media and Creative agencies are constantly working hard to be on trend, have the latest information and be clued up on style. Getting this right has a degree of risk because the best work goes in directions that people haven’t gone before. The luxury of time is a thing of the past in advertising, with news and trends spreading online and around the world in an instant. Agencies need to have their fingers on the pulse, to respond quickly to shifting sands, but that can also make mistakes more likely.

What is Media Liability insurance?

Media liability insurance provides cover for companies working within the media industry that are creating content.  It is designed for the unique media and advertising industries to protect the creative journey so creatives can produce innovative work, without fear of financial penalty.  Media Liability Insurance can protect you against such claims as:

• infringement of intellectual property
• breach of confidentiality
• right to privacy
• breach of comparative advertising regulations
• slander or making false or misleading claims.

 

Cyber liability and Data Risk Insurance for Digital Agencies

With the ever-increasing risk of a cyber-attack, Cyber Liability Insurance is essential. The recent Government Cyber Security Breaches Survey found that 32% of businesses identified cybersecurity breaches or attacks in the last 12 months.  “As in previous years, this is much higher specifically among medium businesses (60%), large businesses (61%) and high-income charities (52%). Among this 32 percent of businesses and 22 percent of charities facing breaches or attacks, the most common types are:

• phishing attacks
• others impersonating an organisation in emails or online
• viruses, spyware or malware, including ransomware attacks”

The findings also suggest that, where businesses have lost data or assets through cybersecurity breaches, the financial costs from such incidents have consistently risen since 2017.

What is cyber liability insurance?

Insurance designed for cyber and data risks will protect your business from the dangers of the online world. Perhaps it’s a data breach, you’re hacked, or information becomes corrupted. Depending on how your agency operates, we can provide a cover that meets your needs and offers security for your business. There are numerous areas where a cyber-attack or data breach could have serious consequences. Having the right Cyber Liability Insurance can protect you from:

• A breach of data protection laws
•  Liability for handling data
• Extortion and system rectification costs
• PR expenses and financial loss due to system downtime.

Contents Insurance for Digital Agencies

It’s pretty difficult to run an agency without computers, desks, tables and chairs!  If you have any hardware at all this is the first type of cover you should be looking at. You should also consider portable equipment insurance, which covers everything you and your staff take out and about with you, such as laptops, mobiles, cameras and tablets.

 

Directors & Officers liability insurance (D&O)

Directors and Officers Liability insurance offers financial protection to those who are the director, partner or officer of a company. It is designed to cover the cost of claims for compensation made against the insured individual. Many founders don’t realise that, even in a limited company, you can still personally face legal action, fines, or even prison sentences. You can also be disqualified from being a company director. Investors often ask about D&O as part of their due diligence process, so getting it sorted early shows you take your responsibilities seriously.

 

Employers’ liability insurance

In advertising, your people are everything. Whether on permanent, part-time, freelance or contract basis – you are required by law to have employers’ liability insurance. Employers’ Liability will cover you if an employee claims they sustained an injury or became ill as a result of working for you.

 

Public Liability insurance

Another basic requirement to protect your business should you or one of your team cause injury or property damage to a third party. For an advertising agency this could be whilst on a shoot, or staging an event, or working on a viral stunt or attending industry events.

 

Don’t get lost in insurance jargon

There is a lot to consider when looking at insurance for your digital or creative agency. You’re a busy creative, constantly juggling projects – the last thing you want to waste unnecessary time on is trawling through insurance documents.  If you have any questions about your current policy or are concerned that you are not suitably covered, get in touch with us. We can talk you through what you need to keep your business, your people and your reputation safe.