Digital Agency Insurance

Optimize Your Business Efforts With Digital Agency Insurance

On your best business days, you help your clients efficiently grow their business and connect with their audience. But do you have someone in your corner that can look out for you on your bad days? We can help with that.

Simply Business is an online insurance platform that helps connect business owners with custom insurance quotes from the nation’s top insurers. You don’t need to be an insurance expert to get started, either. Just answer a few questions about your business, then browse personalized policies to find the perfect match.

The best part is that it takes only a few minutes, so you can get back to your campaigns in no time.

Ready to get started?

Here are three types of business insurance available to digital agencies:

• General liability insurance
• Professional liability insurance
• Workers compensation insurance

Each type of policy covers different scenarios, but all insurance offers these benefits:

• It can protect your business from certain claims.
• It can cover damages caused by your negligence.
• Proof of insurance can help clients feel good about your work.
• It may be required where you’re located.

Why Do Digital Agencies Need Insurance?

You have enough of those marketing acronyms, campaign goals, and strategy ideas swirling around in your head — we won’t weigh you down with unnecessary insurance information. For digital marketers looking to understand the basics of business insurance, here’s your brief on the what and how of digital agency insurance.

Professional Liability Insurance for Marketing Agencies

We don’t have to remind you that messaging is important — you’ve seen the results in real life. Since your agency has such an influence on your clients’ reputation and success, you take on extra responsibilities.

When you perform a professional service or give advice, you open yourself up to claims of negligence. That’s where professional liability insurance comes in. This type of policy covers you if a client claims that you, your employees, or your business were negligent.

As an example, imagine you’ve just hired a new intern. They help with the development of a digital marketing plan, which ends up being a bit harsh on your client’s competitors. In the shuffle of everything, the project gets approved and moves forward to production. The marketing is seen as talking badly about competition, and your client gets sued. In turn, your client sues you for negligence.

You could try to argue in court that you aren’t to blame for this, but even if you win, you’ll likely accrue legal costs. However, professional liability insurance could step in to save the day in this scenario. Your policy could potentially help offset damages so that your business could continue without having to pay the lawyer’s bill.

Let’s review the scenarios that professional liability insurance typically covers:

• Legal defense costs
• Omissions or alleged omissions
• Negligence or alleged negligence
• Claims and damages
• And more

Having professional liability insurance usually does not protect you from:

• Property damage
• Intentional acts and omissions
• Bodily injury
• Medical expenses
• And more

General Liability Insurance for Marketing Agencies

If professional liability insurance is like a specialist for your business, general liability insurance is more of a generalist. This jack-of-all-trades policy covers bodily injury, property damage, and third-party accidents. “Third parties” refer to your clients or vendors. You also may be able to add content coverage to your policy, which could offset costs if your equipment (e.g., your laptop!) is lost or stolen.

It doesn’t take much to find yourself facing an accident that could set you back thousands of dollars, even as a digital marketer. The average claim for property damage or accidents in small businesses is $30,000, which you’d likely be responsible for without insurance.

How would a calm, safe digital agency end up with such a big bill? Say a client comes to visit your office, trips over a rug, and breaks their hand trying to brace their fall. Ouch! They’re going to have medical bills, and they may sue you to get them paid.

Fortunately, you chose to get business insurance before the hypothetical scenario occurred. In this case, your policy could help pay those medical bills.

To recap, here’s what general liability insurance usually can cover:

• Bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Now check out what general liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Motor vehicles while in business use
• Expected or intentional injury or damage
• And more

Workers Compensation Insurance for Marketing Agencies

You started on your own, and now you’re here! Adding employees to your company is an exciting time, but you’ll have a few extra administrative tasks to consider. Mainly, the fact that most states require you to carry workers compensation insurance if you have part-time or full-time employees.

You can check your state laws here, or simply get your free quote to find out what coverage laws apply to you.

So what does workers comp cover? It can help cover the costs if your employees get sick or injured while working for you. Considering that the average work injury cost is $41,000, you’ll be grateful you have the coverage if you ever need it.

In general, workers compensation insurance for digital agencies can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Why Should I Get Digital Agency Business Insurance?

You’re here because you want to learn about business insurance, which means you’ve already taken the first step in protecting what you’ve built. Even though your workplace doesn’t feel risky, and you don’t think you’re doing life-altering work, every business has risks. Perhaps you aren’t sure you really need coverage or what coverage is best.

The scary fact is that 43% of small business owners polled reported being threatened with or involved in a civil lawsuit. That was across all industries, from marketers and bakers to builders and manufacturers. You’re no stranger to stats, so you might be willing to take a chance that you will never face a lawsuit.

If you want to go that route, you’ll need to be prepared to pay for any accidents that may come your way. Take a look at the most common incidents that business owners can face, including how much they cost on average:

• Reputational Harm — $50,000
• Client Injury or Damage — $30,000
• Client Slip and Fall — $20,000

As a digital marketing agency, you have another variable to consider — negligence claims. You could be the most dedicated digital marketer in town, but a disgruntled client could sue you for harming their business. No matter how careful you are, there’s a chance you’ll need to pay the thousands of dollars often associated with damages and negligence.

You also can think of getting business insurance as a strategic competitive advantage. By having a certificate of insurance (COI), you may be able to build trust with potential clients and employees. Having proof of insurance is sometimes required by landlords to rent office space too.

If you’re curious, checking out business insurance is simpler than you may think. Answer a few questions about your business, and you can compare free quotes from the country’s top insurers.

Digital Agency Insurance FAQs

• Is digital marketing insurance required by law?

  Laws about what type of insurance policies digital agencies need are set on the state level. For example, your state may require you to carry workers comp insurance if you have employees, but won’t require business insurance. Keep in mind that some landlords require GL insurance with a lease agreement.

• Is digital agency insurance income tax-deductible?

  Generally, business owners can deduct insurance premiums from their business income taxes. We always recommend talking to an accountant about your state’s laws and your specific business, though.

• How much digital agency insurance will I need?

  Your ideal level of coverage typically depends on:

  • The size of your business
  • Your business’s location
  • Your annual revenue and payroll
  • And more

  You can leave the calculations up to us, though. Our quote process is designed to suggest insurance plan options based on the answers you provide.

  If you have additional questions, our licensed insurance agents are available and are happy to assist you!

• What should I consider before digital agency insurance?

  Getting and comparing quotes is free, so you’ll be able to weigh all of your options. If you’re ready to get your free quote, having the following materials makes the process even faster:

  • Annual revenue estimates
  • Payroll estimates
  • Information on any previous claims
• Does digital agency insurance differ by state?

  Yes, each state sets its business insurance laws. We want to save you time, so instead of digging through state websites to learn the laws, our quote process recommends options for you.

• What does digital marketing insurance cover?

  If you choose a comprehensive package that includes general liability, professional liability, and workers comp, your policy can cover:

  • Bodily injury
  • Accidents and damages
  • Employee injuries
  • Negligence or alleged negligence
  • And more
• How much does insurance for digital agencies cost?

  Each policy is customized to a business’s needs, but generally, your premiums depend on:

  • Payroll and revenue estimates
  • The location of your business
  • The specific services you offer
  • And more

  Want to see how much your digital agency insurance may cost? Just click here and get free quotes from some of the top insurers in the country.

Why Choose Simply Business?

Your clients pay you to have new ideas and make bold decisions. As the top decision-maker in your company, we trust that you know what’s best for your business and team. We also understand that all of the options you face can be overwhelming.

At Simply Business, we aim to make the big decision to buy insurance as easy as possible. We’re an online insurance platform that’s focused on small business owners like you. Thanks to thousands of customers who already trust us to protect their growing businesses, we’re one of the fastest-growing online insurance providers.

So why choose Simply Business?

• We’re fast and affordable. Budgets and timelines matter in your business, and we do our best to make getting insurance that fits your budget, easy.

• We’re flexible with coverage. We can help you secure a certificate of insurance (COI), protect your first employee, or expand to new heights.

• We get your business. Every community comprises a diverse set of companies, and we know they each deserve to be treated as individuals. Get the personalized protection you need when you need it.

We respect the attention to detail and empathy you extend to every client and project, so we offer the best coverage to protect your business.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.