The UK has a £20bn digital media and advertising economy, employing over 130,000 professionals, from full time employees to contractors. Globally, the digital and social media industry combined will top $300bn by 2030. The industry continues to grow at a rapid speed, with the growth of digital media and social media channels, which now contribute towards 95% of advertising spend, effectively changing the landscape of the advertising industry.
With a sharp increase of new start-up advertising companies and contractor, come threats such as claims, data loss and civil/contractual disputes. Creativity is still at the core, but cloud-based technology is now an essential part of the advertising process. This dramatic shift in approach means ad agencies are facing new, uncertain risks and must think carefully about buying the right insurance protection ranging from Professional Liability, Directors & Officers, Cyber and Public/Employers liability.
As a specialist in emerging risks, Servca work with a specialist panel of insurers who cover ad agencies, printing and digital media companies. After all, these organisations often come up with big, new and sometimes controversial ideas, which do not always work or the desired result isn’t achieved. In some cases, such as recent high profile cases - you could face a legal claim and request for compensation, which is where professional indemnity steps in. Servca work with our global clients, in offering a professional service in arranging professional liability cover based on an annual policy, or one-off project – complete with international cover. Professional Indemnity would cover you if:
- A mistake was made, or a client suffers – or claims to suffer – a financial loss as a result of your work. If this happens, PI will cover your legal expenses and compensation costs.
- Breach of industry regulations. Such as television commercials, the contractual obligations of the commercial producer are defined by the APA/IPA Production insurance briefing schedule (PIBS) - failure to meet these obligations could result in significant costs and penalties. In situations like this, PI will cover your defence costs and resulting fines, many of which are insurable.
- Intellectual property dispute - whether protecting your own IP, or defending an infringement of somebody else's. That could be using images or music without permission, or infringing on another company's branding or logo.
As the corporate world continues to evolve into a litigious environment – many clients are now requesting that professional liability be in place prior to any works commencing.