Today’s marketing professionals face increasing demands on their creativity, execution, and delivery of services as buyers of marketing services have become more sophisticated. As buyers’ knowledge and experience levels continue to rise, so do their demands for expertise.
This type of business environment requires an effective risk management plan to protect independent marketing professionals against inadvertent mistakes. Clients who suffer a financial loss or reputational harm resulting from your work, whether real or perceived, will hold you accountable. In addition, more clients are starting to demand proof of adequate liability insurance before they contract with a professional marketing firm.
In response, CAMP has chosen to partner with PROLINK – Canada’s Insurance Connection, to provide members with an exclusive insurance program. The CAMP insurance program has been tailored to serve the unique needs of the independent marketing professionals who own and operate their own business.
Liability Insurance for Independent Marketing Professionals
There are two distinct types of liability insurance that all marketing professionals with their own business should have in order to protect their business as well as their personal assets (in the case of sole proprietors):
- Errors & Omissions Liability Insurance (also known as “E&O” or Professional Liability Insurance):
E&O insurance will respond to defend allegations brought against you for negligence stemming from an error or oversight committed while performing professional marketing services for a third party client. It also extends to cover intellectual property infringement and network and security breaches. E&O covers all marketing professionals and employees working for the insured company. The policy will pay your legal costs to respond to an allegation of negligence by a third party, whether frivolous or not. If you are found liable, the CAMP insurer will pay the damages for which you are held legally responsible. Consider the following example of a claim that could be insured by your E&O coverage:
A small-mid size marketing firm focused on client branding and strategy is tasked with revamping a brand for a mid-size client, company ABC. An employee is tasked with leading the project and together with ABC they finalize the decision to proceed in a new direction. After months of work the new branding is released to the public on all communication platforms. Shortly after, they receive an allegation from Company XYZ that the new branding has distinct similarities to their company’s brand and Company XYZ threatens to sue Company ABC as well as the marketing firm for damages.
The insured marketing firm was negligent in delivering their services to their client. The CAMP E&O policy would defend the marketing firm against the intellectual property infringement claim and pay the final damages awarded to the claimant (company XYZ
). Company ABC that was included in the lawsuit would be relieved to know that their marketing firm would be able to resolve the lawsuit through their E&O insurer. Furthermore, the marketing firm is able to continue their operations having avoided what would have been a financially crippling incident, had they been uninsured.
- Commercial General Liability Insurance (also known as “CGL”):
CGL will respond to defend allegations brought against you for bodily injury and/or property damage you may have caused a third party. It also extends to covers libel and slander and defamation of character. The policy covers your general business activities including meetings with clients or suppliers in or out of your office, as well as your company’s involvement with the marketing projects you manage. CGL is especially critical today as marketing professionals are tasked with managing clients’ websites and social media pages.
In our increasingly litigious society, we often observe that an excess of parties are named in a lawsuit to see if a settlement will “stick to someone”. Your CAMP endorsed Insurer will have a duty to defend you even if the case against you is frivolous.
Combining E&O and CGL insurance through the CAMP insurance program ensures that your company will experience reduced gaps in coverage and will be able to continue to operate with confidence even when faced with a claim.
To learn more about the CAMP insurance program and to connect with an advisor to discuss your specific needs, please speak with Neil Felder of PROLINK.
CAMP Insurance Program Manager
800 663 6828
PROLINK is a Canadian insurance brokerage that specializes in managing group insurance programs for professional associations. CAMP has endorsed PROLINK as their insurance partner to deliver a commercial insurance program (E&O and CGL) as well as a Group Home & Auto insurance program. PROLINK is proud to be a partner with CAMP and has a dedicated team ready to serve and advocate for CAMP members, by providing sound advice and straightforward solutions for your complex needs.