Professional Liability Insurance Requirement for Marketing Consultants

If you’re an advertising and marketing consultant, you most likely have a minumum of one client company that needs you to carry some form of insurance. You may run a small marketing or researching the market firm with some employees, or possibly you’re an independent Online marketing consultant or media professional. Regardless, you may wonder: Is this insurance for marketing consultants really necessary?

If your client says you really need it, you know you need to get it to secure the job. The good news is, within the majority of instances, obtaining the required marketing consultant insurance policy can be both affordable and healthy for the business.

In general, client companies want their marketing consultants, researchers and media professionals to transport some or the following three kinds of coverage:

General liability insurance

General liability insurance covers problems for people or property damage. To marketing consultants, insurance such as this may seem unnecessary. In the end, what’s the likelihood that somebody leading a conference or presenting slides will damage a client’s property or hurt someone?

The truth is, a lot of companies require any vendors who will come on-site – from network technicians to promote researchers, media professionals and Online marketing consultants – to prove they have general liability insurance. Generally, the client’s risk managers drive the mandate, trying to reduce the company’s chance of financial losses from lawsuits.

Additionally, general liability insurance reduces marketing consultants’ liability in case of accidents at their very own offices. If your client injures himself when he trips within the rug inside your office’s entryway, your current liability insurance should cover any related financial liability – and may save your business model with that client.

Professional liability insurance

Professional liability insurance, also called errors and omissions or E&O insurance, is much like malpractice insurance for marketing consultants, protecting you in case of errors and omissions produced by you or your employees. Clients want it for a good reason: People get some things wrong.

Your client’s greatest risk in providing you with in like a marketing consultant is the fact that any error or oversight from you could spark case or financial loss. Having one of these type of insurance can substantially reduce marketing consultants’ liability.

Let’s say you develop a marketing campaign that you’re sure will win your client start up business. Instead, some existing customers discover the campaign offensive, sparking a backlash that leads to lost business for the client. Your client can declare that you’re responsible for any resulting financial losses and may sue you for compensation.

Professional liability insurance coverage is a good idea for just about any marketing or media professional. Without them, your legal defense might be expensive enough to sink your company. Sometimes, it just takes a misunderstanding, and you will be hit having a lawsuit. Following a client alleges that you simply were negligent and communications start to break down, your legal expenses rise exponentially.

To get answers concerning the right amount of coverage for E&O, marketing consultants should look for a reputable insurance company that can measure the business’ level of risk.

Workers’ compensation insurance

Workers’ compensation insurance may be one of the more confusing kinds of coverage, largely because some states want it while others don’t. In case your client’s home office is found in a state that needs it, you may be asked to transport it, even when it’s not a requirement within the state in which you do business.

Why do clients insist upon workers’ compensation insurance for marketing consultants? In certain states, if you’re injured while under contract, your client must take care of you using its own workers’ compensation policy. And, in certain states, your client’s insurance company may require its customers to pay for all contractors that don’t show their very own proof of coverage. In the two cases, your clients’ premiums increase.

In the event of on-the-job injuries, workers’ compensation insurance will pay for medical expenses in addition to disability and compensation. If you’re a solo marketing consultant or media professional, and you've got your own medical health insurance policy, workers’ compensation insurance might be unnecessary – your client may need it nonetheless.

If your marketing consultancy comes with employees, protecting all of them with workers’ compensation insurance coverage is just a wise idea. Whether it’s repetitive stress injuries because of typing or perhaps a sprained ankle from the fall on the slick break room floor, the smallest on-the-job hazards could cause injuries that may take your people from the job. Workers’ compensation insurance provides you with peace of mind that the employees are looked after, and saves your marketing consulting company the price of any ongoing health care.