The great Jazz saxophonist Coleman Hawkins once said: “If you don’t make mistakes you are not trying hard enough.” And we’re firm believers in this. 

Mistakes will happen in business, and digital agencies are no exception to the rule. The important thing to consider is how prepared your company is to deal with these mistakes, and how well insured your brand is, should any challenges arise.  While people need life care planning, businesses also need insurance to protect themselves against liabilities.

For digital agencies, a robust and carefully considered insurance policy is essential. Digital agencies face a whole range of different exposures. Potential issues include media liability, cyber-attacks and ransomware, public liability, material damage, errors and omissions and of course employers’ liability. Good coverage must, therefore, encompass the wide range of potential risks covered under these terms, providing complete peace of mind for business owners, partner brands and employees alike.  

How we work are becoming increasingly digital, particularly as so many of us are now working from home. And that means that there are several new risks that digital agencies must consider. To learn more about what you can do to look after your business, take a look at our guide to the key types of coverage required, and the exposures that these policies offer protection from. 

Professional indemnity/errors and omissions insurance

Even the most professional businesses make mistakes from time to time. In most cases, these issues can be easily rectified. But sometimes these mistakes prove incredibly costly, for either your own company or one of your clients. Should this happen, your agency might need the support of its insurer.

Digital agencies can easily find themselves faced with eye-watering claims as a result of mistakes made by team members, which is why coverage through e&o insurance or indemnity insurance is so important for companies operating in the digital media space.

Media liability insurance

Nothing moves quite like the media industry. This is a field that never stands still, and that’s why agencies need to think differently if they want to make themselves heard. Of course, every time an agency does something unique and unexpected, there’s a degree of risk involved. 

If your company is exploring a new way of working, saying something that hasn’t been said, or trying something your industry has never seen, then you may well find yourself facing exposures that your brand had never previously considered. But that’s not necessarily a problem if you’ve got a good media liability policy on board. 

Media liability coverage provides complete support to companies who fall foul of media-related claims. This coverage provides protection from all manner of related exposures, from defamation and invasion of privacy to plagiarism and copyright infringement.

Cyber insurance 

Cyber attacks are a huge threat to all kinds of businesses, but for digital agencies, they can be truly devastating. Cyber policies protect brands from the risks associated with attacks, ranging from data leaks and the corruption of key information to new campaign leaks and other online dangers. 

Policies focussing on cyber protection are increasingly important, given the number of digital agencies who are currently operating from team members’ homes. With face to face workshops switching to Zoom meetings, and work computers set aside in favour of home laptops, agencies are facing all kinds of new cyber risks. 

The potential for passing on malware to clients from home PCs is a huge area of concern, and a very real danger given current circumstances. Cyber policies are designed to assist in situations like these. The policies provide help and support should any cyber-related issues arise, helping to get companies back to work as quickly as possible.

Public liability insurance

Public liability insurance is another important form of coverage for digital agencies. This coverage provides financial support to companies if they find themselves faced with a claim brought by a member of the public. Claims can be related to any kind of business activity, and often see claimants seeking compensation for damages to property or injuries. 

So, if a member of the public happened to be accidentally injured during an immersive brand experience created by a digital agency, then public liability insurance would come into play. Policies can be written with each agency’s specific exposures in mind, ensuring that every possible risk is covered.

Employers’ liability insurance

Employers’ liability insurance is similar to public liability insurance, but the difference here is that it offers protection against claims brought by an agency’s employees. This is a form of insurance which is legally required for all UK employers. By law, companies must be covered by employers’ liability insurance, with the government mandating coverage of at least £5 million.

Employees face all kinds of risks in the workplace, and employers’ liability insurance equips companies with the means to provide any compensation that might be required, in the event of a successful claim. 

Material damage insurance

No matter where your teams are currently working from, you’ll need material damage coverage. This insurance provides financial protection from the impact of all kinds of different threats, from fires and storms to floods and other unexpected events.

The coverage protects business premises, such as the agency’s HQ, and it can also be used to insure the contents of a building and an agency’s vital equipment. Material damage insurance is hugely beneficial to digital agencies, providing essential support should the company face any of these threats.

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The best digital agencies do things differently, and this can sometimes mean facing risks that have never been seen before. That’s why specialist digital agency insurance is so important. 

Specialist insurance policies provide complete coverage for digital agencies, protecting brands from the financial impact of mistakes, damage, cyber-attacks, injury claims and much more. Comprehensive policies provide companies with peace of mind, and it’s this peace of mind that often gives brands the confidence to challenge the norms, and position themselves as real trailblazers in their respective fields. 

To learn more about how specialist insurance policies can help companies operating in the digital media space, take a look at Eggar Forrester Creative.

How To Choose Your Digital Agency Insurance 

You have learned the different insurance policies that a digital agency should have for liability protection. Now, the question is, “How do you choose a good digital agency insurance coverage?”.

Below are some important considerations when choosing digital agency insurance:

• Coverage: Do you need basic or comprehensive insurance coverage? If you have a large digital agency with plenty of clients, it’s best to have comprehensive insurance policy. This ensures that you won’t be paying out of your savings if there are any liabilities.
• Compare: It’s essential to compare different insurance policies to get the best insurance terms without breaking your bank. Check whether the inclusive coverage items are worth the cost or if you need the bells and whistles or not.
• Terms: Always read the fine print before finalizing your decision of what digital agency insurance plan to choose. Are there any deductibles? What are the fees that may apply?

Takeaway

Choose the right digital agency insurance that suits your business needs. Think about your regular tasks and the risks of your agency. Are you ready to invest in insurance or still take the risk of paying damages out of your pocket? Make a wise decision today.