Public relations agencies are primarily engaged in designing and implementing public relations campaigns for their clients. The purpose of a public relations campaign is to promote the interests and image of a particular client who may be an individual, a corporation or some other entity (e.g., a nonprofit). Public relations firms also engage in lobbying, political consulting and media relations on behalf of their clients.
PR firms are paid large sums of money to engage in these activities. You are often needed most in times of crisis, when a client needs your expertise to craft a strategy and communicate effectively with the media and the general public. If you err or miscommunicate or do anything that leads to a financial loss for a client, your business will be the one in the crosshairs. Your PR firm is not immune to crises of your own; if you are accused of a mistake or negligence in your professional services, you can be sued.
You also face typical property and liability risks just like any other business. In order for you to focus on your clients, you need to make sure your assets are protected if something goes wrong or someone sues you. You need public relations insurance to make sure you have the protection you need in order to stay afloat if the worst happens.
What kinds of risks can threaten a public relations firm? Consider the following:
With the help of a Trusted Choice® insurance agent, you can determine which kinds of public relations insurance you need in order to protect your business assets. You likely need the following types of business insurance policies, at a minimum.
You might be able to purchase a business owners policy, or BOP. A BOP is a packaged policy designed for small- to medium-sized businesses. It bundles property, liability and business interruption coverage into one convenient, affordable policy. Only certain businesses qualify for a BOP; your Trusted Choice agent can help you determine your eligibility.
Your clients rely on you for your skills and expertise. They pay you to craft and manage their public images and may even need you to respond in a crisis. If you or one of your employees is negligent and makes a mistake that leads to a financial loss for a client, you can be sued for damages.
Examples of professional negligence for a public relations firm include the following:
Even if a negligence claim against you is unfounded, you still have to defend yourself if you are sued. Professional liability insurance for public relations firms protects you if your advice or services cause financial harm to a client.
If you don’t have professional liability coverage, your personal assets could be at risk. A professional liability policy pays for your legal defense, including attorney fees, court costs, and any settlements or judgments that you must pay.
If you work out of your home full time or even just some of the time, you may be uninsured or underinsured if you think you have coverage under your homeowners insurance policy.
A typical homeowners insurance policy limits coverage for office equipment to around $2,500 — not nearly enough to replace a computer, printer, phones, desk, fax, scanner, or other equipment or supplies you need for your business. And your homeowners policy will not cover business liability, loss or damage of business records, and damage caused by business interruption.
If you have a home office, you have several options in order to make sure you have appropriate coverage:
You might need a variety of additional business insurance policies or endorsements for your PR firm. Talk to your independent Trusted Choice agent about your need for any of the following:
PR professionals know how important it is to have good advisers in your corner. In order to find great quotes for business insurance to protect your assets, talk to a Trusted Choice agent. A local independent insurance agent can work with multiple highly-rated insurance companies in order to find the best combination of coverage and price for your business. Your independent agent will get to know you and your business and will remain your trusted adviser for the long term. Talk to an agent in your area today.