Skip to main content

How professional indemnity insurance can protect those in the advertising and marketing industry

Professional indemnity insurance might be more commonly associated with the legal and medical professions, but it is appropriate and often necessary in a far wider range of industries. One of these is advertising and marketing.

There are certain industries in which professional indemnity insurance is mandatory – that is, required by law. Due to state legislation or membership of a particular profession, indemnity insurance must here be purchased by default as a condition of doing business. These are known as ‘involuntary’ professions with regards professional indemnity.

There are also those professions in which insurance is not a prior necessary, but still required in certain circumstances and therefore generally recommended. Professional indemnity (PI) insurance is typically sought by individuals whose professions offer advice as a matter of course. Examples are accounting and financial services, architecture and building, consultants, IT, legal and medical businesses. Advertising falls within this definition of offering advice, and although the consequences of a mistake might here be less severe than in the medical or legal spheres, it can still be prohibitively expensive.

Advertising and marketing
Those in the advertising and marketing industry may feel that they do not require professional indemnity insurance, since circumstances are unlikely to arise in which legal action is taken to rectify financial loss. However, this is unfortunately far from the case. As a result, it is worth carefully considering the cost and likelihood of a claim arising, and securing suitable PI if it is felt that such a claim could present an unacceptable risk. The risk and expense of such a claim will be factored into the premiums, as with all forms of insurance, as well as the level of coverage required. This means that the cost of PI in this area is likely to be low, and probably a wise investment to make.

As in other industries, good sense can prevent the chance of a claim. However, it is impossible to plan for every eventuality. In the case of advertising and marketing, including its elements of graphic design, one of the most likely problem areas is copyright. Since it is not always possible to be certain a design does not already exist elsewhere, there is the chance that your work might resemble an existing one closely enough to trigger an action. Even if this does not result in a payout, there could well be circumstances where – for this reason or others – you need to rectify such a mistake and reprint or recreate any materials required by the client. Without professional indemnity insurance, these costs would be born by your organisation. Other circumstances in which PI might be needed are loss of documents or unavoidable delays, breach of confidentiality, and breach of advertising regulations. Finally, there is the chance that your client might sue, claiming that your campaign actually had a negative effect on their business.

Types of professional indemnity insurance
Generally speaking, there are two forms of wording used for professional indemnity insurance. The first covers negligent act, error or omission. This is a basic form of cover and the insurance only applies to those narrowly-defined events. Needless to say, there are many circumstances which fall outside of this definition for which you would not be covered.

The second form of wording includes professional indemnity ‘for any civil liability’. This is an extremely broad definition, and so there is usually a list of exclusions. This ensures that the policy only covers eventualities within its necessary remit – rather than those that fall, for example, within the realm of employers’ liability or public liability.  This helps to keep premiums lower, but it means that policy wording can be quite complex. The distinction between the two types is not clear cut, and some basic policies may cover areas like libel/slander and breach of duty that other insurers place in the ‘any civil liability’ category. Because insurers in any case differ in the circumstances for which they provide cover, you should always consult with an adviser to make sure that your professional indemnity policy is suitable for your role and profession.


Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Brief Overview of Credit Card Machines

The world has witnessed so much of modernization eliminating the cash transactions from businesses. These days we have all sorts of online transaction which is popularized by the help of credit card machines. This is a device that can do transactions with a debit card or a credit card. Credit card machines securely transmit funds from one account to another. It is a Point of Sale terminal that can do transaction with a credit / debit card. This machine allows a merchant to insert, swipe, or key in manually the required credit card information and transmit such data to the merchant service provider for consent and then later on the transfer the fund to the merchant. It is used by merchants to directly capture card information instead of manually entering it in card details. Credit card machines are efficient enough to provide the benefit of decreased transaction processing times.

Four Things to Know About the Housing Market in 2021

Due to the Covid-19 pandemic, the increase in the number of people working from home as well as the initial ban on property transactions in the first lockdown, the housing market in the UK was majorly affected. After the first lockdown, the housing market restarted in the UK and was allowed during the second and third lockdown. The government introduced the stamp duty holiday which definitely helped boost the housing market as well as the buyer's confidence, and due to its overwhelming success, this scheme has been extended till July 2021. Even though the demand for homes increased, the average price of property rose in certain areas and government schemes worked like a charm, the housing market was nowhere close to where it was before the pre-Covid era. While no experts can predict with any amount of certainty the future of the housing industry in the UK, here are the four things that you need to know about the housing market in the UK in 2021. Increase in demand for properties in

Peer-to-peer Lending Oprions for Students

Is peer-to-peer lending safe? Going to college is necessary in this day and age if you hope to get a good paying job. However, finding the money to do so isn’t always easy. One method of getting money for college is to take out a student loan from the government. Another is to go a private lending institution, such as a bank or credit union. A third method, and one that is becoming more and more popular, is to get a loan from a private individual. This type of loan is usually called peer-to-peer (P2P) lending. Following are a few options for students who are seeking a peer-to-peer loan. What Is Peer-to-Peer Lending? Peer-to-peer lending is essentially a financial agreement that takes place between individuals. One party, you, borrows money from someone else. It works the same way as a traditional loan because unlike a scholarship, grant, or gift, you will be expected to pay the money back, on time, and with interest tacked on. You and the lender agree on how much will be paid back wit

Responsibilities a Property Management Company Needs to Handle

When you are considering investing in a residential or commercial property, you need to plan a number of things. At such times, getting help from the right professionals may be of immense help. You may consider opting for property management companies for handling the responsibilities. Understanding the tasks, before and after the purchase, these companies handle is necessary before you employ them.

Why comparing ISA rates is a necessity?

Investment is not about the capital you put in an account, it is your ability to judge risk and return trade-off. Unless you weigh your decision carefully you may end up making no profit. Choosing the best ISA provider therefore could be a difficult task. If you are investing in cash ISAs you must have few hundreds of options to test the best. One should compare ISA rates for the bigger return. But who can help you on this? How do you know which Cash ISAs is giving better interest rate? What are the terms and conditions? Who are the account providers? Are these accounts easily accessible? What others are talking about those ISA accounts?  How advantageous cash ISAs could be in terms of risk coverage?