What insurance might you need?
Clearly marketing and advertising includes a full spectrum of different skills. That said, while the risks faced can be different in the detail, they are similar at a high level. To start with, there are three different types of liability insurance:
Professional Indemnity Insurance
The first and one of the most important types of insurance to get is professional indemnity insurance (PI). It could cover you in the event of your client making claims or allegations that your negligent service or advice resulted in their financial loss. This could have been caused by mistakes you've made and / or things you've failed to do. In another words Professional Indemnity insurance could protect you from:
- Defamation claims
- Unintentional intellectual property infringement (it may exclude though patent infringement or trade secret misappropriation)
- Loss of documents or data
- Negligent misrepresentation or misstatement
- Losses caused by employee dishonesty
- Negligent transmission of a computer virus, worm, etc. or negligence in connection with a denial of service attack
- Unintentional breach of confidentiality or invasion of privacy
- Providing misleading and / or inaccurate information
Whether you’re at fault or not, an angry client, upset that a sales campaign has failed, might decide to sue you or your small company on the basis of you providing negligent advice. If they do, the legal bills could become very expensive indeed.
PI could cover the legal costs associated with defending the case against you as well as any associated damages should you lose.
Public Liability Insurance
This type of liability insurance could protect you against the cost of defending claims for accidental injuries or damage to property that a member of the general public suffered because of your negligence. Public liability could cover you if – for example – your client slipped on a wet floor, that wasn’t marked as such, and broke an arm during a visit to your office.
Employers’ Liability Insurance
The final type of liability cover to get in place is employers’ liability. This is a compulsory form of insurance for anyone that employs staff, including temporary or agency workers. Employers liability insurance could protect you against claims should your staff hurt themselves or become ill due to work they carried out while under your employment.