A successful marketing agency has a plan and strategy to follow, regardless of the type of marketing or type of client, it is servicing. Executing this plan consists of the creation of a marketing strategy, communicating the ideas to the targeted market and delivering results for your client.

In this result driven environment, clients are depending on you to create a boost in their own clientele. Before you help them become a better company, help yourself by taking a look into your insurance policy so you can be covered and save yourself potential financial losses that could seriously halt your own company growth.

Keep reading and learn more about insurance for marketing agencies in Michigan.


General Liability

Though you may think a marketing firm would not have much risk when it comes to bodily injury or property damage to a third party, which is the general coverage this protects you from, it remains the most common and recommended type of coverage. All it takes is for one of your clients to claim that you, or an employee, are the cause of damage to them or their property.

This claim, whether factual or not, could send your company into a long and costly lawsuit, and for some small businesses, could lead to bankruptcy. Should this happen, general liability would cover any court costs including settlements and medical expenses. In the marketing world, the most common occurrences that will be covered are any liabilities caused by:

  • Copyright infringement
  • Invasion of privacy
  • Copied or duplicating other advertisements
  • Defamation

Property Insurance

Right after general liability, property insurance is the next most common insurance type. For most marketing agencies, the real chunk of work you do may be online so you might not think of property insurance to be needed or as important. However, property insurance will cover and fully reimburse you should any properties (computers, furniture, inventory, office space) get damaged caused by:

  • Fire
  • Theft
  • Vandalism
  • Some weather conditions

Business Owner’s Policy

For some marketing agencies, if you are still in the growing stages and are viewed as low-risk, you may qualify for BOP, or business owner’s policy. What BOP does is cut the cost for companies by combining the two biggest insurance types, the aforementioned general liability, and property insurance, into one bundle.

Errors and Omissions/Professional Liability

In the marketing industry, your successes and failures will all be determined by the results you can produce. Forgetting to add a key piece of information in an ad for your client can be bad news for your client, and may lead to even bigger problems than a disgruntled client. As an advertising firm, your clients and customers will be looking at your work as the reason for their boom or lack of work. For most marketing firms, the cost of this coverage can come out to around or less than one percent of gross revenue. Errors and omissions will cover you in the case that your client sues you for:

  • Incomplete or unsatisfactory work
  • Carelessness or negligence
  • Failure to execute agreed upon work

Workers’ Compensation

Being based in Michigan, you are required by the law to provide your employees with workers’ compensation. If an employee is injured while on the job, whether it is on-site or in the office, workers’ compensation will cover any costs that should arise from:

  • Medical expenses (surgery, treatments, therapy, etc.)
  • Paid leave while recovering
  • Lawsuits

Cyber Liability

For the majority of advertising agencies, an enormous amount of your work relies on the use of computers. Unfortunately, this comes during the time that hackers are becoming smarter and more lethal with their attacks. Having your system hacked can be devastating to any company, no matter the size. If your company is relied upon to upkeep your customer’s websites, this can cover you in those instances as well. Should your company get hacked, cyber liability will cover you for:

  • Crisis management
  • Investigation into hack
  • Advertisements to amend relations with customer
  • Stolen money reimbursements


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Determining the cost of insurance for your marketing agency will depend mainly on the size of your company and client base. The cost of insurance may be a scary thought when your company’s success is based solely on how your client feels you performed, but it is no doubt a need in this day and age. So when looking at what insurance policies you will need and how much they will cost, the main factors to take into account are:

  • Size of client base
  • Amount of employees
  • Whether your jobs are temporary or permanent
  • Type of marketing offered (online, radio, television, billboard)
  • Company location and revenue


When creating the best possible marketing strategy for your clients, it is crucial to not overlook details. Should you forget a step in your plan, it could be very bad news for you and your client’s success. Take care of yourself and ensure your marketing agency to make sure you get covered immediately. Contact us at Compass Insurance Agency and let us figure out the best insurance strategy in order for you to get working on your next big marketing plan.