Marketing consultants and independent media professionals make their livings giving advice: which kind of advertising to do, what platform to build a website in, how many colors should be in a logo – the list goes on and on. Because of the subjective nature of this type of work, it’s very possible that at some point a client is going to be unhappy with the work, and may even pursue legal remediation. This is why all small businesses in the marketing and media consulting space should consider two types of small business insurance: professional liability coverage and general liability protection.
Also known as errors and omissions or E&O, professional liability insurance protects your business from claims against your business as a result of any mistakes that you might make in the course of providing services. It protects your business even if you haven’t actually made a mistake, and it covers your legal defense and financial compensation for your client (up to policy limits).
For example, let’s say you’re hired to create a marketing plan for a growing financial services firm. Your research is thorough and they love your recommendations initially, but an economic downturn causes their business to plummet. They assign blame to the marketing plan you suggested, and they implemented. Should they file a lawsuit against you to reclaim the project price your PL policy will step in and represent your interests.
When getting professional liability insurance for your marketing consultancy be sure to choose a provider that automatically adds coverage for copyright infringement – a common issue in this line of work.
General liability insurance is the coverage you need as protection against the common incidents and accidents that happen all the time. It protects your business against covered third-party claims for bodily injury and related medical costs (slips and falls), personal injury (libel or slander), and damage to someone else’s property.
When would a media consultant need protection from a GL policy? If a client trips and falls while at your office and breaks a bone. If the electrical cord you set up in your client’s trade show catches on the neighboring booth, knocking it down and damaging it. If they spill their coffee on a potential client’s phone system, shorting it out. In these and many other situations, general liability coverage will take care of costs for repair or replacement.
You could also get the general liability coverage your need as part of a Business Owners Policy (BOP), which contains general liability coverage with property insurance to protect your business property against physical loss or damage. Since a BOP combines two coverages for one price it can be a cost-effective way to get general liability coverage and property coverage without spending much more in premiums.
Having insurance is an absolutely essential tool for protecting your small business as it grows, so be sure your current coverage offers the protection you need – insurance coverage tailored for the needs of your media or marketing consultancy. And if you don’t yet have small business coverage take a couple minutes to get a small business insurance quote today. Chances are, you’ll be glad you did!