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Insurance for Advertising

Whether you’re an international giant or a small-scale advertising business, specialized insurance can position you better for success in this dynamic industry. As your trusted partner, Founder Shield brings tailored business insurance to help protect your business against potential liabilities. 

Industry Overview

The U.S. advertising and PR sector recently reported revenue of $154 billion while handling expenses amounting to $94.9 billion.

The sector forecasts a 2.6% growth in 2023, positioning the advertising market to reach a monumental $352 billion.

The digital realm is growing significantly; the U.S. advertising expenditure is projected to rise beyond 68% by 2026. On the flip side, traditional mediums, like television, are seeing a decline.

With such rapid growth comes challenges. A single advertising injury claim can cost a business huge reputational and financial loss. Founder Shield’s insurance policy ensures you’re thriving despite all these challenges.

Why Is Insurance for
Advertisers Important?

Advertisers can leverage insurance to be protected against several risks, improve the efficiency of their business processes, and position themselves as credible within the industry.

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Content Liability

Advertisers can be held liable for the content that they publish or associate themselves with, even if they do not create the content themselves. This includes liability for defamation, copyright infringement, and privacy violations. For example, if an advertiser’s ad is placed on a website that contains offensive or harmful content, the advertiser could be held liable for that content.

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Media Errors and Omissions

Advertisers can be held liable for errors and omissions in their advertising campaigns. This includes liability for providing inaccurate or misleading information, or for failing to disclose important information. For example, if an advertiser claims that their product is clinically proven to be effective, but this is not true, the advertiser could be held liable for media errors and omissions.

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Intellectual Property Infringement

Advertisers can be held liable for infringing on the intellectual property rights of others. This includes liability for copyright infringement, trademark infringement, and trade dress infringement. For example, if an advertiser uses a logo or image that is copyrighted by another party without permission, the advertiser could be held liable for intellectual property infringement.

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Cyber Risks

Advertisers are increasingly vulnerable to cyber risks, such as data breaches, ransomware attacks, and phishing attacks. These attacks can damage the advertiser’s reputation, lead to lost revenue, and result in legal liability. For example, if an advertiser’s customer database is hacked and customer data is stolen, the advertiser could be held liable for the data breach.

Advertising Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for advertising companies:

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General Liability Learn More
General Liability

General Liability Insurance provides broad coverage against common risks like bodily injuries or property damage resulting from a company’s operations or on its premises. For advertising companies, this is particularly beneficial when hosting client meetings, shooting advertisements on location, or participating in trade events. It acts as a shield against potential claims, ensuring that unforeseen accidents don’t result in significant financial burdens.

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Errors and Omissions Learn More
Errors and Omissions

Errors and Omissions (E&O) Insurance covers claims related to professional errors, negligence, or inaccuracies in services provided. In the world of advertising, where campaigns and strategies are crafted for clients, there’s always a risk that a campaign might not achieve its intended result or inadvertently misrepresent a product. E&O steps in to protect advertising companies from potential lawsuits or financial claims due to such professional oversights.

Cyber Liability Learn More
Cyber Liability

Cyber Liability Insurance addresses risks associated with digital operations, such as data breaches or cyberattacks. Given that advertising companies now heavily rely on digital platforms and often handle sensitive client data, this policy is invaluable. It ensures that in case of a cyber-incident, the company is covered both in terms of financial losses and possible reputational damages.

Advertising Specific
Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in the Advertising Specific space:

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Content Creator Insurance Learn More
Content Creator Insurance

Content Creator Insurance is tailor-made for entities involved in producing and disseminating content. Advertising companies, constantly creating ads, videos, and other promotional materials, could inadvertently step on legal toes, be it via copyright infringement or defamation. This insurance ensures they can continue to innovate and create without constant worry about potential legal ramifications.

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Intellectual Property Learn More
Intellectual Property

Intellectual Property (IP) Insurance covers businesses in the event of IP disputes, such as allegations of copyright, trademark, or patent infringements. Advertising agencies, often in the business of creating original content and campaigns, need to safeguard their creations and also ensure they don’t inadvertently infringe on others’ IPs. This policy offers a safety net, covering legal defenses and potential settlements.

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Property Learn More

Property Insurance offers coverage against damage to or loss of physical assets, be it office spaces, equipment, or promotional materials. For advertising companies, which often invest heavily in high-end equipment and maintain physical offices, this insurance ensures that events like fires, thefts, or natural disasters don’t result in crippling financial losses, allowing for quicker recovery and business continuity.

Advertising Insurance Costs

Advertising agencies face unique risks, and insurance protects your business from financial blows. Here are a few cost factors insurers consider when determining premiums::

  • Agency Size & Revenue: Larger agencies with higher revenue typically pay more due to potentially greater exposure to lawsuits.
  • Coverage Types: The types of insurance you need (e.g., general liability, professional liability) and their coverage limits will impact the cost.
  • Claims History: A history of claims can lead to higher premiums.
  • Location: Operating in a more litigious area might influence costs.

Advertising Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for advertising companies will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Advertising insurance isn’t universally mandated by law. However, given the unique risks associated with the advertising industry—like potential copyright infringements, defamation claims, or professional errors—it’s highly recommended. Some clients might also require their advertising partners to carry certain types of insurance as part of their contractual agreements, making it a practical necessity in many professional relationships.

The extent of advertising insurance you’ll need is influenced by several factors, including the size of your agency, the scope of your projects, your client base, and the types of advertising channels you utilize. Larger agencies handling big-budget campaigns may require more comprehensive coverage compared to smaller firms. A risk assessment, often facilitated by an insurance agent familiar with the advertising domain, can offer insights into the ideal coverage amounts and types.

To procure advertising insurance, start by researching insurance providers specializing in commercial or industry-specific policies. Contact these providers to discuss your specific needs, and obtain multiple quotes for comparison. Consulting with an insurance agent or broker experienced in the advertising sector can also be immensely beneficial. They can guide you through policy options, ensuring you get the coverage that best suits your agency’s risk profile.

Business liability insurance, commonly known as general liability insurance, protects businesses from financial losses stemming from claims of bodily injury, property damage, or personal/advertising injuries caused due to the company’s operations, products, or within its premises. It serves as a foundational coverage, ensuring that businesses can operate without the constant worry of potential lawsuits or claims impacting their financial stability.


Absolutely. Most insurance providers allow for policy customization to ensure that coverage aligns closely with a business’s unique risk profile. For advertising agencies, this might mean adding specific riders or endorsements for unique risks like intellectual property disputes or tailored errors & omissions coverage. It’s essential to work closely with your insurance provider or broker to craft a policy that fits snugly with your agency’s operational nuances and potential risk exposures.

Advertising Insurance Quotes

Finding advertising policies doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager
Jonathan Selby, Tech & Media Lead and General Manager

Your Advertising Insurance Specialist

Jonathan spent the first five years of his professional insurance career working as a generalist broker at a traditional firm on Long Island. Intrigued by how to leverage technology in the industry, he joined the Founder Shield team in 2016 and quickly grew into his current leadership role of General Manager. Jonathan works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world. Outside of work, he can be found on the basketball court and chess board — but not at the same time.

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for Media companies, offering numerous benefits and advantages over traditional brokers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield
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Industry Expertise

Founder Shield is focused on protecting rapidly evolving Media startups. We ensure that our products are tailored to meet the unique needs of social media corporations.

Customized Solutions

Founder Shield offers bespoke policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with social media operations.

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Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your social media insurance quickly, allowing you to make informed decisions fast.

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Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your policy, submit claims, and access important documents whenever you need them.

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Dedicated Support

Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance policy.

Scalable Coverage

As your Media business grows, Founder Shield’s policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for advertising businesses because of our specialization in the Media industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.