| NYC Business Group
General Liability Insurance for Advertising Firms
Advertising firms face numerous risks, but liability over what the firm publishes is the main risk. Therefore, an advertising firm can get sued by a client for making an advertising mistake. Alternatively, a competitor can file a lawsuit citing copyright infringement or defamation. A general liability insurance policy is crucial because it covers common business risks, for example, customer property damage, bodily injuries, or advertising injury. Other times, general liability insurance is a prerequisite to signing a commercial lease.
If you own an advertising firm, it is important to determine the type of insurance policies you must purchase to protect yourself and your business. Fortunately, small business owners qualify for a business owner’s policy (BOP). BOP is a better alternative because it costs less and combines commercial property insurance and general liability insurance. Therefore, small business owners can get coverage at a competitive cost instead of purchasing each policy separately. However, for your business to become eligible for a business owner’s policy, you must:
- Have less than 100 employees
- Make less than a million dollars in annual revenue
- Own or operate a low-risk business, for example, advertising or media
- Purchase at least 12 months of business interruption insurance
- Own or operate your business from a small office
General liability insurance (business liability insurance) is vital, especially if you deal with several clients. Anything can go wrong, and buying agency ad insurance is the only way to protect yourself and your business. Lawsuits are expensive and could cost your firm thousands of dollars in legal fees, medical expenses, or settlements.
What Does General Liability Insurance (GLI) Cover?
You must first determine what your business liability insurance might and might not cover. Consider talking to your insurance agent and asking the right questions to understand what your policy can cover clearly. Business liability insurance helps cover the following:
Client injuries
General liability insurance covers bodily injuries at your office or from your advertising materials. If you are at fault and an injured person sues, your advertising firm is at risk of paying attorney’s fees, medical bills, and court-ordered judgments/settlements. However, it is crucial to understand that this policy does not cover employee injuries. Therefore, if one of your employees is injured at your office, GLI does not cover the losses incurred. You need worker’s compensation insurance to protect your employees from possible loss of wages or to pay out of pocket.
Client property damage
If you work or meet several clients regularly, general liability insurance can help pay for the cost of repairing or replacing a client’s property that’s damaged. If by any chance there are disagreements about repair or replacement costs, the policy can cover attorney fees, or even court-ordered settlements, especially when dealing with expensive items.
Non-physical claims
Typically, business liability insurance covers advertising injuries like slander, copyright infringement, and libel. However, it is important to consult an experienced insurance agent to understand what’s covered. Sometimes general liability insurance fails to provide this type of coverage. Instead, they advise their clients to purchase media liability insurance, also known as professional liability insurance in some industries.
Business owners should also understand that liability insurance does not cover their property from damages, theft, etc. You need commercial property insurance to protect your valuable office equipment or items. GLI does not cover data breaches and cyberattacks. Cyber insurance is a must-have policy to cover possible financial losses if you handle credit cards or other sensitive information. Cyber insurance protects your business from client notification expenses, data breach lawsuits, and fraud monitoring costs.
How Much Does General Liability Insurance Cost?
Although business liability insurance is affordable, you can pay more or less depending on your risks. The following factors determine your insurance costs:
- Revenue
- Number of employees
- Business Location
- Type of media services or advertising offered
- Business property or equipment
- Policy limits and deductible
- Your claims history
General liability insurance protects your business from certain risks but does not cover work-related injuries, data breaches, or auto accidents. You should consider purchasing commercial auto, worker’s comp, cyber liability, and media liability insurance. To get the best deal, research and compare online quotes and only consult reputable insurance agents.
Final Words
Finally, you should consider inquiring whether you need to purchase commercial umbrella insurance. If your general liability insurance limit is exceeded, you might have to pay the remaining damages out of pocket! A commercial umbrella policy offers business owners when facing a major lawsuit because the policy can cover excess damages if the general liability policy limit is exceeded. Give us a Call Today, for a FREE Quote!