Public Relations Insurance Policy Information
Public Relations Insurance. Public relations agencies are primarily engaged in designing and implementing public relations campaigns for their clients. They also engage in lobbying, political consulting and media relations on behalf of their clients. They are paid large sums of money to engage in these activities. They are often needed because a situation is already delicate and their expertise is required to smooth things over.
But even the most tactful and strategic PR professionals sometimes find themselves on the receiving end of angry accusations of libel, slander, or defamation. Unintended plagiarism & client record theft are other common causes of claims against your firm. Defending yourself against negligence claims like these costs time, money and can damage your own & your firm's reputation - that's why it's important to be fully covered.
If a client sues your firm, how much would it cost? For most firms, the cost of a lawsuit - often six or seven figures - could be devastating. Fortunately, public relations insurance can help offer protection by paying for your legal expenses.
Public relations insurance protects your PR firm 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 public relations insurance questions:
- What Is Public Relations Insurance?
- How Much Does Public Relations Insurance Cost?
- Why Do PR Firms Need Professional Liability Insurance?
- What Type Of Insurance Do Public Relations Firms Need?
- What Does X Insurance Cover & Pay For?
What Is Public Relations Insurance?
Public Relations (PR) business insurance is a type of insurance coverage that protects a PR firm and its clients from various risks and liabilities. This insurance is designed specifically for PR businesses and provides protection against losses or damages that may arise from their activities, such as errors and omissions, defamation, copyright infringement, and more.
The coverage helps to cover legal fees, settlements, and other costs associated with defending against claims. PR business insurance is an essential form of protection for PR firms, as it helps to protect their financial stability and reputation.
How Much Does Public Relations Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small public relations firms ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do PR Firms Need Professional Liability Insurance?
In the constantly changing world of PR it can be easy to make a mistake and when your firm is representing others, you need to ensure that you have public relations insurance protection.
As an example, a PR firm could be sued because they failed to improve the image of a professional athlete, resulting in the loss of a corporate endorsement. Also, a PR firm could be sued by a lobbying organization because they did not succeed in changing public opinion regarding a certain issue.
Due to the possibility of facing expensive lawsuits, public relations consultants should consider purchasing professional liability, also know as errors and omissions (E&O) insurance. This public relations insurance covers you for the financial consequences of any mistakes you, or your staff, may make in providing professional advice.
It also protects against allegations of professional misconduct or negligence to help safeguard your personal and business reputation.
If you're sued, your legal bill could easily reach six figures. Think about all of the potential costs:
- Lawyers' fees.
- Expert witness expenses.
- Settlements costs.
- Damages owed to a client, customer, or other injured party.
Professional liability insurance can cover these expenses, shielding you from the high price of a lawsuit.
What Type Of Insurance Do Public Relations Firms Need?
Commercial General Liability Insurance: General liability protects your firm from a variety of claims, including property damage and bodily injury. For example...
If you're meeting with a client and spill coffee on their laptop, you're legally liable for causing the damage (and potentially for loss of documents and data, too). Also, slip and fall type accidents in your office are covered as well.
Workers Compensation: Workers comp for PR firms covers the cost of compensation if an employee of your business is injured or becomes ill as a direct result of the work they undertake for your firm. If your firm has any employees you are required to hold an employers' liability insurance policy by law in most states.
Directors and Officers Liability: This public relations insurance protects directors and officers of your firm if there is a lawsuit claiming they managed it without proper regard for the rights of others. The policy will pay any judgment for which you are legally liable, up to the policy limit.
It also provides for legal defense costs, which can be substantial even where there has been no wrongdoing.
Business Owner's Policy (BOP): BOP insurance bundles basic coverage from property and liability risks into one package. This type of public relations insurance often includes coverage for property, liability, crime, and business income.
BOP also often includes business interruption insurance, which reimburses you up to a year of lost revenue from damages. BOP insurance does not include coverage for E&O and commercial vehicles. workers' comp, health, and disability insurances are also not part of a BOP.
What Does Public Relations Insurance Cover & Pay For?
Public Relations (PR) firms can be sued for a variety of reasons, including:
- Defamation: If a PR firm makes a false statement about an individual or organization that harms their reputation, they may be sued for defamation.
- Breach of Contract: If a PR firm fails to deliver the services promised in a contract with a client, the client may sue for breach of contract.
- Copyright Infringement: If a PR firm uses copyrighted material without permission, they may be sued for copyright infringement.
- Discrimination: If a PR firm discriminates against an employee or client based on their race, gender, religion, or other protected characteristic, they may be sued for discrimination.
- Negligence: If a PR firm fails to exercise reasonable care in performing its duties, and this results in harm to a client or other party, they may be sued for negligence.
To protect themselves from these types of lawsuits, PR firms can purchase insurance policies that cover various types of liability. Here are some examples of how insurance can help pay for a lawsuit:
General Liability Insurance: This insurance policy can provide coverage for claims of bodily injury, property damage, and personal and advertising injury (such as defamation). If a PR firm is sued for defamation, their general liability insurance may cover the costs of defending against the lawsuit and paying any damages awarded.
Professional Liability Insurance: This insurance policy (also known as Errors and Omissions insurance) can provide coverage for claims arising from the professional services provided by the PR firm. If a client sues a PR firm for breach of contract or negligence, their professional liability insurance may cover the costs of defending against the lawsuit and paying any damages awarded.
Cyber Liability Insurance: This insurance policy can provide coverage for claims arising from cyber attacks, data breaches, and other cyber-related incidents. If a PR firm is sued for failing to protect a client's sensitive information, their cyber liability insurance may cover the costs of defending against the lawsuit and paying any damages awarded.
Employment Practices Liability Insurance: This insurance policy can provide coverage for claims arising from employment-related issues, such as discrimination, harassment, and wrongful termination. If a PR firm is sued by an employee or former employee, their employment practices liability insurance may cover the costs of defending against the lawsuit and paying any damages awarded.
In summary, PR firms can be sued for various reasons, and insurance policies can help protect them from the financial costs of these lawsuits. Depending on the type of lawsuit, different insurance policies may provide coverage for defense costs and damages awarded.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8743 Public Relations Services
- NAICS CODE: 541820 Public Relations Agencies
- Suggested Workers Compensation Code(s): 8810 Clerical Office Employees NOC
Description for 8743: Public Relations Services
Division I: Services | Major Group 87: Engineering, Accounting, Research, Management, And Related Services | Industry Group 874: Management And Public Relations Services
8743 Public Relations Services: Establishments primarily engaged in the preparation of materials, written or spoken, which are designed to influence the general public or other groups in promoting the interests of their clients.
- Public relations services
Public Relations Insurance - The Bottom Line
You know you need public relations insurance to protect your firm. But how much do you need to set aside in your budget to cover the costs? You have to decide what level of cover is enough for you. Consider what you do, who you do it for and how much it's worth. Think about worst-case scenario and what could go wrong.
Always bear in mind that it better to have too much coverage a opposed not enough. Your legal defense can be very costly. Your public relations insurance coverage has to be enough to cover all of this.
Your insurance costs vary depending on your firm's size, location, among a other factors. Talk to a professional insurance broker to get more information.
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
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.