Hawaii Advertising Agency Insurance Policy Information
Hawaii Advertising Agency Insurance. Advertising agencies develop or design advertising and promotional materials for a client. They may work with the client in developing an overall marketing strategy to promote brand awareness of the client's products or services, including market research. The agency may develop various types of audio, visual, or printed material, including brochures, logos, themes, trademarks, jingles or musical compositions, radio or television commercials, or online communications. Advertising agencies often purchase advertising space in periodicals, billboards, or air time on behalf of their clients.
As an advertising agent, you engage in work each day that is both challenging and creative, and you have a responsibility to the clientele that you serve to give them your all. Clients fully expect that you will increase their sales or boost their reputations and image. If you fail to do this, then you may find yourself on the receiving end of a negligence claim, especially if your client experiences financial damage due to promises you made but failed to deliver upon. For this reason, it is important for your business to maintain the right Hawaii advertising agency insurance at all times.
Hawaii advertising agency insurance protects your company from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Do You Need HI Advertising Agency Insurance?
Being sued is certainly no fun, but it can be less intimidating if you have the right insurance in place. In the work that you do for other businesses, you put your business and yourself at risk financially. From physical injuries on your business' premises to property damage on a client's property, people in your line of work often find themselves facing claims that can put their business' future at risk. With a comprehensive Hawaii advertising agency insurance plan in place, you provide your advertising business with a buffer from the inherent risks you face.
Professional Liability Insurance
As an advertising agency, your business may find itself accused of making errors or running ill-devised campaigns. Some clients are difficult to please, but no one is perfect. Omissions, errors, negligence and oversight do occur, even when you or your staff are giving it your all. Mistakes are part of life, and this is doubly true in the deadline-heavy and quick-paced environment of the ad agency.
When a client puts his trust in you to portray an image to the public, and you subsequently let the client down, then he may have a good reason to sue you. Failing to provide the services that you promise can spur a lawsuit, and even if the claim is unfounded, you still need to pay for a defense. Errors and omissions insurance or professional liability insurance can help pay not only the cost of hiring an attorney, but also any judgement obtained against you as a result of claims arising. These claims include accusations of defamation of character, libel, slander, copyright infringement, and infliction of emotional distress. Failure to deliver products or services, mistakes leading to financial loss, and other types of professional negligence may also lead to Hawaii advertising agency insurance claims.
For example, you may find yourself facing a lawsuit if you:
- Make a mistake in the wording of an advertisement, and the mistake causes your client a financial loss or loss of reputation.
- Design a campaign that does not increase sales for the company as contractually promised.
- Failure to get the right usage license for a photo that you use, causing the client to be sued himself.
- Your advertisement is viewed as slanderous to a client's competitor.
With professional liability insurance for your ad agency, you protect your business and yourself from the costs that come with lawsuits, even if the suit is deemed a lacking merit or unfounded. This includes settlement, court costs, and other related expenses.
Risks For Your HI Advertising Agency
Just like any other business, your advertising agency is subject to liability and property risks. Advertising agency insurance can address these risks and provide a layer of protection to guard your business from potential financial pitfalls. Unplanned events can really threaten the financial livelihood of your business if you fail to maintain the right levels of Hawaii advertising agency insurance coverage to protect you against:
- Slip-and-fall injuries
- Wind, hail and other types of storm damage
- Damage from fire and smoke
- Loss from theft
- Damage from vandalism
- Injuries to employees on the job
Business Owners Policy
When you work closely with a commercial agent who understands your business model and the inherent risks involved with your business, then you can be assured that the coverage you choose is the right level and type for your needs.After reviewing your needs, your agent may recommend a bundle of basic coverage types for your particular business. These BOP policies (business owner's policy) packages provide affordable yet comprehensive coverage for your business that usually includes property coverage for your actual physical location and the contents contained therein; this includes your office building, computers, equipment and any furniture. It will protect both owned and leased assets.
BOP policies also provide business interruption coverage. This coverage compensated your business for any lost income due to a covered peril and for operating expenses that you continue to have after closing the business due to a covered event. In addition, BOP policies give you liability coverage to pay for any bodily injury or property damage claims you may face. This includes third-party damage caused by your or your employees' negligence. For instance, if a client becomes injured on your business' premises, this policy kicks in to cover your financial responsibilities to the client.
Additional endorsements may also be needed. This might include electronic data processing coverage. This pays for lost data or any resulting lost income when your computer system or network is damaged due to vandalism, theft, computer malware or viruses. Cyber liability is also often recommended by seasoned agents. This type of policy covers any sort of data breach that occurs that jeopardizes stored data. It can help you pay for the cost of any investigation and public relations resulting from such an occurrence.
Additional Coverages For Advertising Agencies
Consider a commercial umbrella insurance policy. This 'excess liability' policy goes above and beyond the initial policy limits of your other policies. If you ever face a major lawsuit that is not covered in its entirety by your existing policy, your umbrella policy can help deter those costs.
Hawaii Advertising Agencies Risks & Exposures
Premises liability exposure may be limited to that of an office. If clients visit the premises, they must be confined to customer waiting areas and designated conference areas. To prevent slips, trips, and falls, all areas must be well maintained with floor covering in good condition. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Off-premises exposures arise from sales visits, training sessions, and any production sites used for photography or filming. The areas should be secured to prevent injury to the general public, who may trip over equipment or power cords, be struck by falling objects, or come into contact with electrical hazards. Contracts must be in place for all actors and locations to identify responsible parties in the event of a loss.
Professional liability and advertising liability exposures are high as advertising agencies work with clients to present their products and services in the best possible light. The advertising content may include statements regarding what the product will do and how it will perform. Additional exposures include allegations of copyright or trademark infringements or misleading statements made about competitors. Agencies that purchase ad space or air time for their clients may be held responsible for costs associated with misleading product data, such as wrong prices or incorrect specifications.
Workers compensation exposures may be limited to those of an office. Potential injuries from working with computers include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations. Work with electrical equipment may result in shocks and burns. Off-site work exposures may include sales presentations, photo and film production, and similar activities. Travel may be extensive, either inside or outside the United States. Off-site production can involve rough or unfamiliar terrain that can result in slips, trips, or falls.
Carrying heavy equipment can result in back strains or sprains. Injuries can result from working with electrical equipment, automobile accidents, and contact with animals, clients, or the general public. If employees work overseas, the potential for injury can be very high due to lack of control over exposures. Special foreign coverage may be required. If an employee is injured in another country, the cost of returning home could be extremely high. Repatriation expense coverage is recommended.
Property exposures may be limited to that of an office, or there may be extensive operations in the production of photographic, graphic design, audio, visual or works of art for clients. Ignition sources include electrical wiring, heating, and air conditioning systems, wear, and overheating of equipment. Property values can be concentrated in high-tech electronic equipment at the main location.
Audio and photography equipment is valuable and may be a target for thieves. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Off-premises exposures may include equipment kept at homes of employees and representatives carrying portable computers and display equipment.
Equipment breakdown exposures are from the breakdown of heating and air-conditioning equipment. Breakdown of climate control systems may cause serious loss, especially to artwork.
Crime exposures are from employee dishonesty. Advertisers frequently have access to their clients' proprietary information, which may include personal information about the clients, their employees or customers. Hazards increase without proper background checks, along with monitoring procedures and securing of all records to prevent unauthorized access. All billing and disbursements must be handled by separate individuals and reconciled on a regular basis. Audio and photography equipment are valuable. Some types are relatively small and easily concealed. Equipment must be inventoried regularly.
Inland marine exposures include accounts receivable if the agency offers credit, bailees' customers for the property of clients, computers, and valuable papers and records for clients' and vendors' information. A special floater may be needed if the property is taken to off-site production locations. Clients' records and art are typically originals that are difficult or expensive to re-create.
There may be a morale hazard if the agency does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water, and fire. Power failure and power surges are potentially severe hazards. Duplicates should be kept off-site to allow for re-creation following a loss.
Business auto exposure may be limited to hired and non-owned, including the use of rental cars. If vehicles are supplied to employees, there should be written procedures regarding personal use by employees and their families. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained, and records kept in a central location. If there is an overseas auto exposure, foreign coverage may be required.
Advertising Agencies Commercial Coverage
Work with your agent to provide information about your business and get quotes for your HI advertising agency insurance based on your specific situation, risks, and risk tolerance.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Hawaii also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Advertising, Marketing & Media Insurance
Learn about small business media liability insurance - a specialized form of professional liability insurance that provides protection for legal claims brought by third parties.
- Advertising Agency
- Book Publishers
- Call Center
- Direct Mailing Services
- Graphic Arts
- Graphic Designers
- Magazine Publishers
- Market Research Firm
- Marketing Consultant
- Podcast Insurance
- Printers & Publishers
- Public Relations
- Radio Stations
- Search Engine Services SEO
- Social Media Consultant
- Television Stations
Media operations are fast-paced businesses with unique property and liability insurance exposures. They depend more and more on computer systems and up-to-date software programs. These businesses usually have extensive contracts with both freelance individuals and corporations.
In addition, personal injury liability and confidentiality issues must be addressed. Insurance coverage for these concerns must be as comprehensive, flexible and responsive as the organization seeking it.
Advertising and Media Liability Insurance provisions are not standardized, so it is critical to carefully review a particular form's basic features and available coverage options. While some carriers offer coverage on an open perils basis, most will provide coverage only on a named perils basis.
The named perils generally include coverage against allegations involving defamation, disparagement of an individual's reputation, product disparagement, invasion or infringement of the right of privacy, infliction of emotional distress, plagiarism, piracy, infringement of copyright, trademark, or other intellectual property, newsgathering torts such as trespass and assault, unfair competition with respect to other covered communication perils, and errors and omissions.
Coverage can be written on a claims-made basis or on occurrence-based forms. The occurrence basis affords additional protection to the insured as coverage is provided for a claim or event occurring during the policy period, even if the coverage expires or is cancelled or nonrenewed.
Most media liability policies provide a Limit of Liability per event, plus an Aggregate Limit of Liability for all events covered during the policy term. Some carriers now offer coverage without requiring an Aggregate Limit of Liability. Such a policy is an advantage to the insured as this eliminates the fear that the policy limits will run out before the policy expires.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees' Customers, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional and Advertising Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Automobile Liability and Physical Damage, Foreign Automobile Liability and Physical Damage, Foreign Workers Compensation, Repatriation Expense and Stop Gap Liability.
Request a free Hawaii Advertising Agency insurance quote in Ahuimanu, Aiea, Ainaloa, Anahola, Captain Cook, Eleele, Ewa Beach, Ewa Gentry, Ewa Villages, Haiku-Pauwela, Halawa, Haleiwa, Hanamaulu, Hanapepe, Hauula, Hawaiian Acres, Hawaiian Beaches, Hawaiian Ocean View, Hawaiian Paradise Park, Heeia, Hickam Housing, Hilo, Holualoa, Honalo, Honaunau-Napoopoo, Honokaa, Honolulu, Iroquois Point, Kahaluu, Kahaluu-Keauhou, Kahuku, Kahului, Kailua, Kalaheo, Kalaoa, Kaneohe, Kaneohe Station, Kapaa, Kapaau, Kapolei, Kaunakakai, Keaau, Kealakekua, Kekaha, Keokea, Kihei, Kilauea, Koloa, Kualapuu, Kula, Lahaina, Laie, Lanai City, Lawai, Lihue, Maili, Makaha, Makakilo, Makawao, Maunawili, Mililani Mauka, Mililani Town, Mokuleia, Mountain View, Nanakuli, Nanawale Estates, Napili-Honokowai, Ocean Pointe, Orchidlands Estates, Paia, Pearl City, Princeville, Puhi, Pukalani, Pupukea, Royal Kunia, Schofield Barracks, Volcano, Wahiawa, Waialua, Waianae, Waihee-Waiehu, Waikapu, Waikele, Waikoloa Village, Wailea, Wailua, Wailua Homesteads, Wailuku, Waimalu, Waimanalo, Waimanalo Beach, Waimea, Waimea CDP, Waipahu, Waipio, Waipio Acres, West Loch Estate, Wheeler AFB, Whitmore Village and all other HI cities & Hawaii counties near me in The Aloha State.
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