As a digital marketing business, you could be held liable for many of the same risks common to any company, such as fire, theft, or third-party injury, but you also face specific risks for your business. From charges of professional negligence to libel, your business could be sued for a number of reasons. This is why it’s important to consider obtaining comprehensive business insurance coverage that will provide financial protection for a variety of risks, whether it’s a physical disaster like a fire, a lawsuit claiming copyright infringement, or a cyberattack.

What insurance coverage do I need for my digital marketing business?

While there are many types of coverage for companies to consider, these insurance policies are particularly important for digital marketers to consider:

Media Liability Insurance

Because digital marketers often create publicly visible content, they have a higher likelihood of being sued for libel, slander, or copyright infringement. Although general liability insurance typically includes a personal and advertising injury section that covers these claims, marketing and advertising companies are commonly excluded because of their greater risk. Since lawsuits can be costly, it’s important to consider purchasing media liability insurance to financially protect your company. Media liability insurance is similar to professional liability insurance for other industries. As well as personal and advertising injury cases, it will cover you if you are sued for any failures in your professional services and work.

Examples:

• In an online ad campaign, your firm uses artwork that looks very similar to designs made by a professional illustrator. The illustrator sues your firm for copyright infringement. Your insurer would pay for your legal defense and any settlements.
• Your digital marketing agency creates an email marketing campaign for a client. Unfortunately, a mistake your agency made in setting up the email campaign means that a large number of your client’s customers who had opted out of marketing emails are sent the promotional campaign. Many customers complain and cancel their paid accounts. Your client sues your agency for damages.

Cyber Liability Insurance

Cybersecurity is a concern for most modern companies. Digital marketing companies rely heavily on computers, servers, and private and public networks, making it especially important that they protect themselves from cyberattacks. Even if your company takes extra precautions in managing cybersecurity, cybercriminals frequently develop new methods of breaking into digital systems, so there’s always a risk that you may be hacked or your data may be held for ransom. Cyber liability insurance can provide financial assistance to help your company stay in business in the event of cyberattacks, and insurers often provide resources to help you prevent incidents as well.

Example:

• Hackers break into your company’s computer systems and steal confidential client information, including credit card numbers, email addresses, and phone numbers. They threaten to release the data unless you pay them a ransom. Your cyber liability insurance would provide experts to help you deal with the situation and would pay the ransom if necessary.

Commercial Property Insurance

If your business owns or rents office space or relies on valuable equipment at your office, including computers and furniture, then it may be wise to invest in commercial property insurance. If an unexpected disaster strikes your offices, repairing or replacing your damaged property can be costly. Commercial property insurance will help your company recover if a catastrophe occurs and your business property is damaged or destroyed.

Commercial property insurance covers the following:

• Buildings belonging to or leased by your company
• Contents of the building, including furniture, computer equipment, and artwork
• Property of others while it is under your care, custody, or control

Example:

• A tree falls onto the roof of your office building during a severe storm, damaging the roof and causing it to leak. Your commercial property insurance will pay for the cost to repair the roof and replace computers and other items that may have been damaged.

General Liability Insurance

Almost all companies have some level of general liability risk, even if they work in an industry that is not physically dangerous. If your company holds meetings with clients at its office, sends employees to meet clients at their offices, or sometimes has outside workers such as delivery people or repair technicians on the property, it’s a good idea to consider general liability insurance. You could be held liable for non-employee injuries or damage to others’ property. General liability insurance covers these common third-party bodily injury and property damage risks. Although general liability policies can also include personal and advertising injury coverage, marketing and advertising businesses are commonly excluded from this coverage.

Example:

• Bodily injury: A service technician visits your offices to repair a coffee machine in your office kitchen. The technician slips on wet flooring in the kitchen and sustains a head injury. Your general liability insurance would cover medical costs and legal costs if the client sues.
• Property damage: Your employees visit a client’s offices to discuss a new digital marketing campaign. One of your employees loses his balance and falls against an expensive decor item, damaging it. Your general liability insurance would pay for the damages.

Additional Coverage

• A business owner’s policy combines general liability, property, business income, and extra expense coverage into a single package. This type of insurance can help small and midsize companies save money on premiums while obtaining a wide range of coverage.
• Business income coverage will reimburse you for lost income and operating expenses if your business is unable to operate due to a covered reason, such as fire, storm damage, or other property damage.
• Workers’ compensation insurance is legally required for companies with employees in most states. It covers employees’ medical expenses and lost income if they are injured while working.
• Special event insurance can protect your company in the case of bodily injury or property damage to third-parties during a special event hosted by the business.
• Employment practices liability insurance protects your business against lawsuits by employees accusing your business of wrongful treatment such as discrimination, harassment, or other employment-related issues.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a marketing agency with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for marketing and technology businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word

Your digital marketing firm could be held liable for a variety of common risks, from unforeseeable disasters that destroy your property to dissatisfied clients making allegations of professional errors. It’s important to consider your business’s individual needs as you choose insurance policies. Ensuring that your company has a wide range of insurance coverage can give you, your employees, and your clients peace of mind, knowing that if an unexpected catastrophe occurs, your company will be financially protected.