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Direct Mailing Services Insurance Policy Information

Direct Mailing Services Insurance

Direct Mailing Services Insurance. Direct mailing can simply be described as a marketing strategy in which targeted physical advertising materials are delivered to prospective or existing customers.

Direct mailing services mail, fax, or electronically transmit information or materials to their clients' customers. Clients may include nonprofit organizations, political groups, retailers, or service providers such as an auto repair shop or a hair salon.

The distribution may include advertising materials such as coupons, flyers, or samples, or promotional novelties such as address labels, greeting cards, key chains, magnets, notepads or pens with customized messages. Materials to be distributed generally arrive in bulk from the printer or manufacturer.

The mailing house sorts and packs the material, prints, affixes an address label, and arranges transport to the shipper. Piece work such as sorting, folding or packing is often done at home by employees or independent jobbers.

The status of these jobbers as an employee or an independent contractor must be determined since it may impact how coverages apply. Mailing houses may also compile, maintain, rent, or sell mailing lists.

Direct mailing services are companies that work closely with marketers to get these campaigns set up and deliver the agreed-on, eye-catching, marketing materials to the correct addresses. That includes making the quality and color of these materials stand out as much as possible.

While many modern consumers might see direct mailing as an outmoded marketing strategy, one that is past its expiration date, they would be surprised - customers are much more likely to pay close attention to physical mail than to an easy-deleted or overlooked email.

Direct mailing houses aren't going anywhere, and remain both effective and profitable. That does not mean, of course, that direct mailing services do not face any risks.

When unforeseen circumstances threaten the company, direct mailing houses will be glad that they have taken the time and effort to ensure that they have the right coverage on their side. What kinds of direct mailing services insurance do they need? Read on to discover more.

Direct mailing services insurance protects mailing houses from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked direct mailing services insurance questions:


What Is Direct Mailing Services Insurance?

Direct mailing services insurance is a type of insurance coverage designed specifically for businesses that use direct mail as a marketing and advertising method.

This type of insurance protects the business from financial loss resulting from mailings that are lost, damaged, or delayed in transit. The coverage includes postal losses, liability for any errors or omissions in the mailing, and damage or loss of the contents of the mailing.

This type of insurance is usually offered as an endorsement to a commercial general liability insurance policy, or as a standalone policy for businesses that rely heavily on direct mail marketing.

How Much Does Direct Mailing Services Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small direct mailing houses ranges from $37 to $59 per month based on location, size, revenue, claims history and more.


Why Do Direct Mailing Services Need Insurance?

Direct Mail In Mailboxes

The owners and managers of direct mailing services will, of course, work hard to ensure that their business thrives and their activities are carried out professionally.

The fact remains, however, that even the most experienced companies cannot predict the future. Direct mailing houses need insurance because they never know when unforeseen circumstances might jeopardize their bottom line.

Numerous circumstances could lead to extensive property damage. These perils include acts of nature (wildfires, earthquakes, and snowstorms, among others), and criminal acts like fire and vandalism. Accidents, too, are always a possibility, and that includes those within your business premises and those affecting vehicles the company uses.

Liability risks, which can carry the consequence of time-consuming and costly litigation, come in equally diverse forms. An employee could be injured while at work. Equipment you have rented or leased could become damaged or break.

Were you to send out the wrong marketing materials, or make accidental copyright violations, the results can be disastrous.

Whatever peril befalls a direct mailing house, it will be significantly easier to overcome the damage with comprehensive direct mailing services insurance on your side.


What Type Of Insurance Do Direct Mailing Services Need?

With so many different types of coverage now available, what kinds of insurance are essential? The answer depends on factors that include the size of your company, the nature of the marketing campaigns you engage in, your location, and how many employees you have.

To gain and full understanding of your needs, it is vital to talk to a competent commercial insurance broker. However, among the core types of direct mailing services insurance required, you can safely count the following:

  • Commercial Property: To protect your financial interests in the event that your direct mailing house is affected by perils like acts of nature, theft, or vandalism, you will need commercial property insurance. It covers the damage or destruction of your business premises as well as the contents. A related policy, business interruption insurance, will also cover any revenue you lose to these perils.
  • General Liability: This form of direct mailing services insurance covers your legal expenses in cases where third parties sue you for bodily injury or property damage, regardless of whether you are later determined to be at fault. In this highly-litigious world, it is essential for nearly all businesses.
  • Errors And Omissions: This kind of liability coverage offers protection against a different threat - accusations that you made a mistake in carrying out work for which you were contracted, or that you were negligent. Similar to commercial general liability insurance, errors and omissions insurance, also called professional liability insurance, helps with attorney fees, court fees, and related legal costs.
  • Workers' Compensation: In any line of work, including yours, employees may be injured in the workplace. Should that happen, this form of coverage shoulders the costs - which include medical bills and wages the employee loses to time off work as they recover.

Mailing houses should be aware that they may also require other kinds of direct mailing services insurance, whether cyber insurance to safeguard their electronic assets, or commercial auto insurance to cover their vehicles. To find out more, consult a commercial insurance broker.


Direct Mailing Services' Risks & Exposures

Direct Mail

Premises liability exposure is limited due to lack of public access to the office and processing location. Visitors should be confined to designated areas. There should be no frayed or worn spots on the carpet and no cracks or holes in the flooring. The number of exits should be sufficient, 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.

Personal and advertising injury claims include allegations of disclosure of confidential mailing lists. These lists must be protected, and privacy laws strictly adhered to.

Professional liability exposure is limited because advertising information comes to the mailing house in final art copy or already printed. The primary exposure is getting the mailing out on the agreed-upon date.

Workers compensation exposures are moderate. Injuries from production machinery are common, as are slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, vehicle accidents, and repetitive motion losses. Workstations must be ergonomically designed. Work with electrical equipment may result in shocks and burns.

The contractual relationship between the mailing house and any independent contractors helps determine the workers compensation exposure, although regulatory definitions of employee may supersede the contract terms.

Property exposures include an office, packaging area, and warehouse for storage of materials. Ignition sources include electrical wiring and lighting, heating and air conditioning systems, processing machinery, and computers. Paper, novelty items, and packaging materials are combustible and can be highly susceptible to damage from fire, smoke or water.

There can be substantial values of the personal property of others. Property values can be concentrated in high-tech electronic equipment at the main location, or there can be off-premises exposure with equipment scattered at homes of employees and representatives carrying portable computers and display equipment. However, inland marine forms generally provide broader coverage for these exposures than property forms.

Inland marine exposures consist of accounts receivable if the mailing house offers credit, computers, goods in transit, and valuable papers and records for customers' and vendors' information. Duplicates of records must be made and kept off-site. The goods in transit exposure is considerable as items may be prepared and bulk shipped to another location for individual mailings.

The contract with the client must spell out the responsibilities of providing insurance coverage. Piece work being sorted or packed off-premises by independent jobbers may be a frequent exposure, although individual values may not be high.

Crime exposure is from employee dishonesty, generally in the form of minor pilferage. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. Regular audits should be conducted.

Business auto exposure is generally limited to hired and non-owned liability. If the mailing house picks up bulk materials to be mailed or transports mailings to shippers, the exposures increase. All drivers who transport goods or drive vehicles at an automobile auction must have a valid commercial license and acceptable MVRs.

Vehicles must be maintained and records kept at a central location. If vehicles are provided to employees, there should be a written procedure regarding personal use by employees and their family members.

What Does Direct Mail Insurance Cover & Pay For?

Direct Mailing Insurance Claim Form

Direct mailing houses can be sued for a variety of reasons, including:

  • Privacy violations: Direct mailing houses may be sued for privacy violations if they send marketing materials to individuals who have opted-out or are on a do-not-call list.v
  • Intellectual property infringement: Direct mailing houses may be sued for copyright or trademark infringement if they use images or text without proper permission or attribution.v
  • Defamation: Direct mailing houses may be sued for defamation if the marketing materials contain false or damaging information about an individual or business.
  • Breach of contract: Direct mailing houses may be sued for breach of contract if they fail to deliver on a contractual obligation, such as delivering a certain number of marketing materials by a specific date.
  • Data breaches: Direct mailing houses may be sued for data breaches if they fail to adequately protect customer data, leading to the unauthorized release of sensitive information.

Insurance can help protect direct mailing houses from the financial impact of lawsuits in several ways. Here are some examples:

General Liability Insurance: General liability insurance can protect direct mailing houses from lawsuits related to privacy violations, intellectual property infringement, defamation, and breach of contract. This type of insurance can cover legal fees, settlements, and judgments.

Cyber Liability Insurance: Cyber liability insurance can protect direct mailing houses from lawsuits related to data breaches. This type of insurance can cover legal fees, the cost of notifying affected customers, and the cost of providing credit monitoring services.

Errors and Omissions Insurance: Errors and omissions insurance can protect direct mailing houses from lawsuits related to mistakes or omissions in their marketing materials. This type of insurance can cover legal fees, settlements, and judgments.

In summary, insurance can help direct mailing houses pay for legal fees, settlements, and judgments related to various types of lawsuits. It's important for direct mailing houses to carefully review their insurance policies to understand what types of coverage they have and to ensure they have adequate coverage for potential risks.

Commercial Insurance And Business Industry Classification


7331: Direct Mail Advertising Services

Division I: Services | Major Group 73: Business Services | Industry Group 733: Mailing, Reproduction, Commercial Art And Photography, and Stenographic Services

7331 Direct Mail Advertising Services: Establishments primarily engaged in furnishing services for direct mail advertising, such as creating, producing, and mailing of direct mail advertising. This industry also includes establishments primarily engaged in compiling and selling mailing lists. Establishments primarily engaged in reproducing direct mail copy on order, but performing none of the other direct mail advertising services, are classified in Manufacturing, Industry Group 275 if they print the copy, and in Industry 7334 if they duplicate the copy by photocopying or similar reproduction methods.

  • Address list compilers
  • Addressing service
  • Direct mail advertising service
  • Mail advertising service
  • Mailing list compilers
  • Mailing service

Direct Mailing Services Insurance - The Bottom Line

To protect your mailing house, employees, contractors and clients, having the correct direct mailing services insurance coverage is essential. To learn what types of policy options are available to you, how much coverage you should have including the cost - consult with a reputable commercial insurance broker.

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, Marketing And Media Insurance

The advertising and marketing industry is a fast-paced and constantly evolving field that involves creating and promoting products or services to consumers. This industry is constantly trying to stay ahead of trends and attract new customers, and as a result, it is prone to risks and uncertainties.

One of the biggest risks that the advertising and marketing industry faces is the potential for legal disputes. For example, a company may be sued for false advertising, copyright infringement, or for using someone else's intellectual property without permission. These types of legal disputes can be costly and time-consuming, and they can damage a company's reputation.

Business insurance is an important tool for protecting businesses in the advertising and marketing industry from these types of risks. Insurance can provide financial protection in the event of a legal dispute, which can help a business to avoid financial ruin. Additionally, insurance can help to protect a business's reputation by helping to manage the cost and impact of any negative publicity.

In addition to legal risks, the advertising and marketing industry is also at risk of financial losses due to errors and omissions. For example, a marketing campaign may not be successful, or a company may make a mistake in the production or distribution of a product. These types of errors and omissions can be costly, and insurance can help to protect a business from these types of losses.

Overall, insurance is an important tool for protecting businesses in the advertising and marketing industry from the various risks that they face. It can provide financial protection in the event of legal disputes or financial losses, and it can help to protect a company's reputation and financial stability.

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.


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