Why do copywriters need insurance?
Copywriters produce content for clients’ briefs; however, the directions are interpreted by a copywriter in their own way. The creative direction can sometimes cause problems.
Protection from copyright infringement claims
Copywriters often work with various types of content, including images, slogans, or brand names. If a copywriter unintentionally uses copyrighted material without proper authorisation, it can lead to copyright infringement claims.
Mitigating defamation claims
Copywriters create content that promotes products, services, or ideas. Sometimes, the language used in advertising or marketing materials may be interpreted as defamatory by individuals or companies, leading to defamation claims.
Errors in professional advice
If as a copywriter you suggest a marketing strategy that does not yield the expected return on investment, insurance can cover the legal costs involved in defending against such a claim.
Content accuracy and misrepresentation
In the fast-paced world of copywriting, errors or misrepresentations in content can occur. If a copywriter unintentionally includes incorrect information or overstates the benefits of a product or service, it can lead to legal disputes.
For example, a copywriter might create promotional materials for a dietary supplement, inadvertently exaggerating its health benefits. Insurance can help cover legal expenses in such cases.
Professional indemnity insurance for copywriters
Professional indemnity insurance is a key cover that protects copywriters from accusations of professional mistakes, negligence, copyright infringement and other claims against you or your business.
It can help to legally shield from the specific risks that copywriters face in their profession and as such protect their career and financial well-being.
What does professional indemnity insurance for copywriters cover?
Professional indemnity insurance protects copywriters from claims or accusations of wrongdoing from their professional advice or work product.
Cover includes:
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example, you may be facing financial demands from a client because:
- You have included an image that you believed to be royalty-free, but it turns out to be copyrighted.
- you have drafted a product description that unintentionally damages a competitor's reputation.
- Your work closely resembles someone else’s content, and they’re asking for compensation.
- Your work caused offence and as a consequence, damaged your client’s reputation.
What professional indemnity limit do copywriters need?
When choosing a limit, consider several factors, including the value of your client contracts, your contractual requirements and obligations, and possible financial impacts if your content should cause an issue.
Does professional indemnity insurance cover my copywriting activities worldwide?
Worldwide cover depends on the provisions in your particular insurance policy. When checking your professional indemnity insurance documentation, always look for the ‘territory or geographical limits’ and ‘jurisdiction’ sections.
Territory or geographical limits:
The territory or geographical limits section tells you where in the world you can provide services. This refers to the virtual and physical delivery of your services.
Jurisdictional limit:
The jurisdictional limit specifies in which jurisdictions your policy will provide legal protection if you are sued.
As a service provider based in the UK, your best option is to sign contracts governed by UK jurisdiction. This dramatically reduces the risk of being sued outside your own country or in a jurisdiction that your policy may exclude.
What does Suited cover?
Suited professional indemnity covers your work anywhere in the world but will not cover claims brought against you in the US or Canada. Therefore if you work with clients in the US or Canada, do not enter contracts governed by those jurisdictions.
Switching your professional indemnity insurance
In the UK, most professional indemnity insurance works on a “claims-made basis”; this essentially means two things:
- You must have an active policy at the time a claim is made; and
- The policy period on your active policy must cover the time when the work was performed
When you cancel your professional indemnity policy, you can no longer make claims against that policy.
If you change provider, ensure your past work is covered, called “retroactive cover”.
Should I keep professional indemnity insurance if I pause or retire from self-employed copywriting?
It’s wise to keep your professional indemnity if you stop working as a freelance copywriter. Claims against professional misconduct can surface months or years after you delivered the work.
If a past client sues you for damages and you have cancelled your professional indemnity, you will not be covered.
How long you keep your cover in place is up to you; consider the type of work you did and the likelihood that a client might bring a claim against you.
Other useful insurance for copywriters
Other insurance copywriters might need will depend on your circumstances:
- Could you afford a legal dispute?
- Do you rely on expensive computer equipment for your income?
- How would you cover your business running costs if you fell ill?
- Do you have employees?
Commercial legal expenses
Commercial legal expenses insurance protects you and your business against commercial disputes, claims, criminal prosecutions, etc. It picks up various risks not covered by professional indemnity or public liability.
Suited Legal Protect provides up to £100,000 in legal costs and professional fees to help tackle a variety of issues a contractor may experience.
Cover includes
- Legal and tax matters concerning your business
- Criminal prosecution
- Compliance & regulation issues
- Help with unpaid invoices (over £200)
For example
- HMRC investigations into your tax affairs
- You need legal help chasing a client who has not paid a significant invoice.
- You wish to take a business partner or client to court over a breach of contract.
- You required guidance on compliance or regulatory issues for your business.
Portable electronics insurance
More than ever copywriters rely on electronic equipment to deliver their services. If you depend on electronic equipment, consider portable electronics insurance to help you with covering replacement or repair costs.
Shopping for copywriters' insurance
Whether or not you decide to use Suited insurance for copywriters to protect yourself, it’s worth keeping the following in mind:
Price isn’t everything
Some providers offer rock-bottom prices, but after-sales service could be lacklustre. Check how easy it is to get in contact with your insurance provider. At Suited, we offer several options and answer quickly.
The reputation of the insurer is important
Insurance needs to be there when you need it most. The payout reputation of an insurer is essential. Suited uses financially sound insurers with an A+ rating.
Many providers charge fees to amend or cancel
Low initial prices often hide additional charges to pay monthly, amend or cancel your policy. At Suited, we charge no extra fees, and you can cancel anytime with no more to pay.
Some policy wordings are restrictive or have a high excess
Some providers will offer attractive prices, but it is at the expense of cover given. Suited professional indemnity and public liability have £0 excess.
