Insurance for Graphic Design/Advertising Firms: Providing Critical Financial Protection

May 15, 2023 | Insurance 101

This article was originally published April 28, 2023

If you’re a creative agency owner or key decision-maker, you’ve got to ensure that your company is protected financially from the many types of business risks you face. There are several steps you should take, but perhaps the most important is obtaining insurance.

There are different types of insurance for graphic design and advertising firms. That’s helpful, as it allows you to select just the policies that are relevant to your operations. For example, you don’t need a commercial auto insurance policy if your firm doesn’t own or lease vehicles for business purposes. 

Graphic designers sits in front of computer

7 Advertising and Graphic Design Business Insurance Policies

Each graphic design or advertising firm is unique and faces different business risks. However, every business in this industry needs some or all of the seven policies below.

  1. Advertising and Graphic Design Errors & Omissions Insurance - Everyone makes mistakes. Errors and omissions insurance or E&O can cover situations where your client claims you made an error and it cost them money. For example, if it was part of your duties on a project to submit an advertisement to a publisher by a certain date and you failed to do so, your client may sue you. E&O insurance can cover your legal defense costs and court-awarded damages up to its limit. 
  2. Advertising and Graphic Design General Liability Insurance - Imagine that a client visiting your office trips over a damaged section of carpet, falls, and breaks their wrist. They might then sue you for the cost of their medical care, and if the court finds you liable, you’ve got to pay that bill. If you have adequate general liability insurance, it can cover the cost. Plus, you can customize your policy with add-ons like cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability insurance.
  3. Advertising and Graphic Design Workers' Compensation Insurance - Companies with employees virtually always are required by their states to have workers’ compensation insurance. It can pay an employee's medical bills and lost wages if they’re injured on the job. There’s also a death benefit for the family of someone who dies as a result of a work-related accident. 
  4. Advertising and Graphic Design Commercial Auto Insurance - If your advertising or graphic design firm owns or leases vehicles, this policy can protect you. It can cover your legal fees and the medical costs of others if your employee is at fault in an accident while driving a company car. It can pay for damages even if the vehicle is used for personal activities outside its primary business use.
  5. Advertising and Graphic Design Business Owners Policy - A business owners policy (BOP) combines general liability coverage and protection for company property. That includes a building you own or space you rent and equipment needed to run your business. The policy can also provide payment for business interruption due to a covered loss, including expenses associated with continuing or resuming operations after suffering property damage. Like with a general liability policy, you can customize your BOP with add-ons, including cyber, hired and non-owned auto liability, employment-related practices liability, and employee benefits liability insurance.
  6. Advertising and Graphic Design Cyber Insurance - It seems cybercrime is continually rising. This type of insurance can pay expenses related to someone illegally gaining access to sensitive information in your possession and using it to commit fraud. You purchase this coverage as an add-on to a BOP or general liability policy.
  7. Advertising and Graphic Design Umbrella Insurance - If a lawsuit filed against your firm exceeds the limit of the underlying biBERK liability policy, umbrella insurance can cover the difference up to its own limit. Without it, you may be responsible for anything over your policy limit.

Does Your Firm Need Advertising or Graphic Design Insurance?

Does your firm need insurance? Yes, you almost certainly do. Frankly, it would be hard to find a small business that doesn’t need insurance.

We sell policies to a wide variety of graphic design, advertising, and marketing experts and companies, including:

  • Advertising professionals
  • Computer graphics professionals
  • Consumer marketing experts
  • Designers
  • Digital artists
  • Digital marketing experts
  • Graphic artists
  • Graphic design professionals
  • Layout artists
  • Marketing agencies
  • Marketing consultants
  • Merchandisers 
  • Retail marketing experts

And these are just a few examples. If you aren’t sure about your insurance needs, we’re happy to talk with you about the specific type of work you do, the business risks you face, and how best to protect yourself financially. 

You shouldn’t assume that because you’ve never run into a liability issue or suffered a loss, you never will. We hope that’s the case for you, but the reality is that a costly incident could occur tomorrow. 

Similarly, the fact that another business owner in your industry doesn’t have insurance shouldn’t give you a false sense of confidence. They’re putting their business at risk of significant financial difficulties, which is something you don’t want to do to yours.

How Much Is Business Insurance for Graphic Design and Advertising Firms?

Many graphic design and advertising firm owners are surprised at how affordable small business insurance is. The various policies are priced separately, and your cost will depend on things like the size of your firm, your insurance claims history, and other factors. But it’s not uncommon for a biBERK policy to provide six or seven figures of coverage for less than $1,000 annually.

We’re able to provide small business insurance for up to 20% less than other providers in some cases because we sell directly to you, with no broker or other intermediary adding their markup. You can find out what you’ll pay for policies by getting instant, self-service online quotes whenever it’s convenient. And if you have questions about the coverage you need, our licensed insurance experts are happy to assist you.

Be Careful Where You Purchase Advertising and Graphic Design Insurance

Not all small business insurance companies are the same. Some, like biBERK, are recognized for paying covered claims fully and promptly. Others may not have the experience or financial reserves needed to protect your business properly.

biBERK is a Berkshire Hathaway Insurance Group company. As an organization, we have over 75 years of insurance experience and millions of satisfied customers. And we pay tens of billions in claims annually. If you ever need to report an incident, you can be confident that we’ll meet our obligation to your company and help prevent your business from taking on a significant financial burden.