What Insurance Do Toronto Advertising Agencies Need?
You’re known for your creativity in advertising campaigns. What happens, though, if one of your campaigns results in a lawsuit? Toronto advertising agencies need adequate business liability insurance to protect themselves from claims that can range from going over budget, not meeting a deadline, or posting libelous information.
Defending a lawsuit can be expensive. Advertising agencies in Toronto need business liability insurance that is specifically tailored to their needs.
Wherever your advertising agency is located in Toronto, the Greater Toronto Area (GTA), or anywhere in Ontario, your Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your business.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Toronto advertising and media firm’s specific needs.
Advertising insurance is recommended for:
- Advertising companies
- Digital/Graphic designers
- Logo designers
- Product designers
- Market researchers
- Social media influencers
- Copywriters and editors
Liability insurance is an essential part of your advertising agency’s insurance package.
Here are the liability coverages that you need to help protect your Toronto advertising or media company from lawsuits.
Professional liability insurance
Professional liability insurance helps protect Toronto advertising/media firms from claims of negligence and errors or omissions related to the services you provide. You will also hear it called errors and omissions insurance (E&O).
Professional liability insurance (E&O) will help pay for your defense lawyer, court costs, deposition fees and it helps cover the settlement should you your case.
For example, an image was used in an advertising campaign without the permission of its creator. Your professional liability insurance can help cover your legal expenses as well as any court-ordered settlement against you for using the unauthorized image.
Commercial general liability insurance
This is necessary liability insurance for advertising agencies in Toronto. What happens if someone gets injured or their property is damaged at your premises? Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Toronto advertising agency in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Cyber liability insurance
You keep sensitive financial information and data belonging to your clients. Your advertising agency could be hacked by cyberthieves. Cyber liability insurance will help protect your Toronto advertising agency financially should there be a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Toronto advertising/media company. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance or professional liability insurance, has reached its coverage limit.
The protection that umbrella insurance provides applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
What other insurance do Toronto financial services businesses need?
Legal protection insurance
This type of insurance gives you access to legal advice, assistance, and coverage for legal disputes. Legal expense insurance protects you from having to pay the total cost of any legal fees should you and your small business face legal action.
Legal protection insurance typically covers:
- Access to a legal advice helpline
- Contract disputes
- Employment disputes
- Employee legal defence
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Toronto advertising agency if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports you when your Toronto advertising/media company can’t operate due to a covered loss.
There are a number of losses that can force your financial services firm to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you are using your car for your job in the advertising industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
How much does Toronto advertising insurance cost?
The following factors are usually considered when determining the cost of your business insurance:
- Location(s)
- Services provided
- Number of employees
- Years of experience
- Annual revenue
- Any past claims
What do I do if I have a claim against my Toronto advertising business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s an insurance checklist:
- Do you have the best Toronto business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage as a Toronto advertising agency. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
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