Why do marketing consultants need insurance?
Marketing consultants advise their clients on how to get their products, services, and brands in front of the right audience. Sometimes, however, the recommended approach may deliver a problem rather than a solution.
Claims that your work caused reputational harm
At times, marketing campaigns may backfire or fail to make an impact. Your counsel could tarnish brands in such instances, leading to potential requests for financial compensation from the clients you previously advised.
Accusation of causing a financial loss
A dissatisfied client might claim that your advice, actions, or recommendations resulted in substantial financial losses, which they seek to recover from you.
Breach of confidentiality
If your client entrusts you with commercially sensitive information and you inadvertently misplace it or disclose it to an unauthorised third party, your client may seek financial compensation.
Incurred industry fines following your advice
As a marketing consultant, you are expected to know the ins and outs of your client’s industry. If your client’s campaign leads to an investigation or even a fine, they may blame you for incorrect advice.
Professional indemnity insurance for marketing consultants
Professional indemnity insurance is a critical cover that protects marketing consultants from accusations of professional mistakes, negligence, copyright infringement and more.
Given the potential exposures marketing consultants can face, professional indemnity insurance can be very affordable compared to the possible costs if you need to defend yourself.
What does marketing consultant professional indemnity insurance cover?
Professional indemnity insurance protects marketing agencies from claims or accusations of wrongdoing from their professional advice or work product.
Cover includes:
- Failing your duty of care
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example, you may be facing financial demands from a client because:
- The marketing strategy has led to brand damage and you are being asked to pay compensation.
- Your advice led to problems for your client who is now facing an investigation from a regulator or industry body.
- The cost of the campaign you designed far exceeded its benefits and your client is demanding compensation for negligence.
Switching your professional indemnity insurance
Occasionally, you might contemplate opting for a more favourable insurance arrangement. If you opt to transition to a new insurer, remember that you forfeit the ability to claim under the previous policy. Ensure that the new insurers protect your previous work under what is known as "retroactive cover."
Should I keep professional indemnity insurance if I close my marketing consultancy?
Maintaining your professional indemnity insurance is prudent even if you decide to close your marketing consultancy. Claims related to professional misconduct can emerge months or even years after you've completed the work. If a former client files a lawsuit against you for damages and you've terminated your professional indemnity cover, you won't have any protection.
You decide the duration of your coverage. Consider the nature of your past work and the possibility of clients lodging claims against you.
With Suited, you can adjust your policy if you're no longer actively working as a marketing consultant. You can opt to put your policy into hibernation, which allows you to remain insured for previous projects at a reduced premium. There's no limit to how long you can keep your policy in hibernation.
Public liability insurance for marketing consultants
If your activities involve meeting clients in person, either at their location or your office, having public liability insurance could be advantageous. Public liability cover protects you from compensation claims of causing an injury or property damage.
What does public liability insurance cover?
Public liability insurance is valuable when faced with injury claims and compensation demands.
Cover includes:
- accidental injury or death
- accidental property damage
For example
- You have picked a location to meet with your client who was injured in a slip-and-fall. They blame you for choosing an unsafe place.
- During your visit to a client site, damage occurs to expensive equipment and you are blamed.
Other insurance marketing consultants might need
Other insurance marketing consultants might need will depend on your circumstances:
- Could you afford a breach of contract dispute?
- Do you rely on expensive computer equipment to do your work?
- Do you store sensitive information?
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.
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.
Portable electronics insurance
Marketing consultants often use electronic equipment to deliver their work. If you depend on electronic equipment, consider portable electronics insurance.
Shopping for marketing consultant liability insurance
Whether or not you decide to use Suited marketing consultant insurance to protect your business, 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 contact 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.
