Media buying agencies purchase advertising time or space from media owners (TV stations, radio stations) and resell it to advertising agencies or individual businesses. Some media buyers function independently while others work as part of a general advertising agency.
Media representatives sell advertising space or time on behalf of media owners, such as newspapers, radio stations and televisions stations. These representatives sell ad space to ad agencies or individual companies.
Both types of media companies are involved in the buying and selling of advertising space and face the risks related to operating a business, including some risks that are unique to advertising and media companies.
Media buying agencies and independent media representatives need customized business insurance policies to protect their assets from catastrophic events and lawsuits.
Media buyers and media representatives are subject to several property and liability risks that should be addressed with comprehensive business insurance portfolio insurance.
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Unforeseen events, such as the following, can threaten your livelihood at any time if you do not have the right insurance coverage:
- Slips and falls
- Weather events (wind, hail, etc.)
- Fire and smoke
- Theft and vandalism
- Employee injuries
- Damage to a client’s property
- Professional negligence
Working closely with an Independent Insurance Agent, you can determine exactly what risks you have and find tailored insurance policies to address them.
If you operate a small- to medium-sized company, you may be able to bundle your basic property and liability coverage together into a packaged policy designed for small businesses owners. A business owners policy (BOP) provides comprehensive, affordable coverage, including:
- property coverage for buildings and their contents, such as computers, office equipment and furniture whether it is owned or leased.
- business interruption coverage, which compensates for lost business income and pays for operating expenses if you must temporarily close following a covered loss (e.g., a building fire).
- liability coverage, which pays for claims of bodily injury and property damage to third parties due to your negligence (e.g., a client injury at your office or damage to client property while visiting their office).
You might also want to consider endorsements to your business owners policy or standalone policies that provide the following types of coverage:
- Computers and media coverage — also called electronic data processing (EDP) insurance — pays for lost data and related lost income if your computers or network are damaged by theft, vandalism, viruses or malware. It may pay for loss of data or software, and physical damage to computers or hardware.
- Business auto insurance covers any vehicles your company owns. It provides liability coverage if you or an employee injures someone or causes property damage while driving a company vehicle. If your employees drive personal vehicles for business purposes, you must have nonowned or hired auto liability coverage to protect your company from accident-related costs.
- Commercial umbrella insurance provides excess liability protection to any of several other liability policies you might have, including commercial general liability, employer’s liability, and hired and nonowned auto liability. By purchasing one commercial umbrella policy, you essentially get higher limits on all of those policies rather than having to raise the limits on each policy individually.
- Workers’ compensation insurance is typically required for any business that has employees, and pays for lost income and medical expenses for employees that are injured on the job.
Professional Liability Insurance
Your clients hire you because of your expertise in purchasing advertising time and space. But what if you or an employee makes a mistake that leads to a financial loss for a client? Imagine if the wrong airtime was purchased and an advertisement failed to run at an optimal time.
What you promised to do in return for your client’s investment in your services clearly did not turn out as planned. The client may want to be compensated for lost sales or other financial losses that result from your negligence.
If a client claims that you have not performed your work as promised or that your work was somehow negligent and caused a financial loss, that client can sue you.
And even if the claim is without merit, you have to defend yourself. It is no secret that lawsuits are costly, and if you don’t have enough funds to defend yourself, you could easily lose your business.
Professional liability insurance, or errors and omissions insurance, protects your business if you are sued for professional negligence, such as errors, omissions or oversights.
It pays for your legal defense, including attorney fees and court costs. Professional liability insurance also pays for settlements or court-ordered judgments that you must pay.
Do Media Buyers Need Cyber Liability Insurance?
Cyber liability is a serious concern for nearly every business. Sixty percent of small businesses that experience a cyber attack or some type of data breach close their doors within six months.
Cyber liability involves a range of potential liability exposures that can occur as a result of using, storing or transferring data electronically for business purposes.
If you fail to protect personal or corporate information that is stored on your business computers, networks, smartphones, laptops and even paper files, sensitive data can be compromised.
Regardless of how a data breach happens, the costs can be devastating for your business. Just some of the costs associated with a data breach include the following:
- Legal requirements to notify individuals or business partners that their data may have been exposed
- Public relations costs necessary to repair your reputation
- Investigative costs to determine exactly how the breach happened and whose data has been exposed
- Loss of income and business interruption caused by the breach
- Providing credit monitoring services for those affected by the breach (e.g., for clients whose data was compromised)
- Personal injury claims (e.g., a lawsuit against you for slander or libel due to website, blog or social media content)
- Loss of income or business interruption for a client or partner
- Ongoing public relations impact and loss of future business
If you are concerned about your cyber liability exposure, talk to your insurance agent about cyber liability coverage. It covers defense costs, settlements and judgments related to cyber liability lawsuits. Cyber liability insurance also covers public relations and other related expenses that you incur in order to salvage your reputation.
You can add cyber liability coverage to a business owners policy or a commercial general liability policy or you can purchase standalone coverage. Your agent can help you determine what type of coverage is best for your business.
Media Buyers and Media Representatives Need Tailored Insurance Plans
Whether you are an independent media buyer or a larger business owner, an agent can get you fast quotes for tailored business insurance. Our independent agents are not locked in to working with one insurance company, and they know that a one-size-fits-all approach is never best.
You need tailored coverage that addresses your unique business risks and a you need local agent who will get to know you and be your trusted adviser for the long term.
When comparing quotes from multiple highly rated insurance companies, be sure you are using an apples-to-apples approach for evaluating the coverage being offered. One company may not offer the exact same coverage, limits or exclusions as the next — so don’t make your decision based on cost alone.
You may find the less expensive proposal offers lower limits or inferior coverage, leaving you with unwanted gaps. Your independent agent can help you evaluate any quotes that you receive so you can make the best choice for your needs and budget.
Contact a local independent agent today.