Essential Business Insurances for Advertising, PR and Communications Firms with NAICS Code 5418

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Learn about the top business insurances needed for advertising, public relations and communications businesses including general liability, property, workers' comp, auto and more.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims
  • Commercial property insurance covers damage to office property and equipment
  • Workers’ compensation covers medical costs and lost wages for job-related injuries
  • Commercial auto insurance provides protection for vehicles used for business
  • Cyber liability covers expenses from cyber attacks like data breaches and network outages
  • Media liability protects against lawsuits over published or broadcast content

Introduction

Advertising, public relations and communications businesses require several key types of business insurance to protect their operations and reduce risk. This article examines the top business insurance policies needed for firms in this industry, including general liability, commercial property, workers’ compensation, commercial auto and professional liability coverage.

General Liability Insurance

General liability insurance is an essential coverage for businesses in the advertising, public relations, and related services industry. It provides protection from claims of negligence and errors that could arise from day-to-day business operations or delivery of services to clients. General liability insurance offers an estimated price range of $2,000-$5,000 annually based on business factors including annual revenue, number of employees, location and loss history. It covers claims related to bodily injury, property damage, privacy violations and more that could impact advertising, PR and related services businesses.

Category List
Benefits
  • Protection against third-party claims of bodily injury or property damage
  • Defense against lawsuits alleging negligence or errors and omissions
  • Peace of mind knowing you’re protected in case of accidents
  • Requirement for many contractors and facilities
  • Coverage for incidents that occur off your business premises
  • Protection for your business assets and continuity of operations
Use Cases
  • Protection against claims of libel, slander or copyright infringement in advertising and PR content
  • Protection if an employee is injured on the job or if the business is responsible for injury to others on the premises
  • Coverage if the business is sued for damage to customer property or for errors and omissions in services provided
  • Defense against claims of improper disclosure of sensitive client data or privacy violations

Based on typical factors insurance companies consider such as types of services provided, number of employees, annual revenue, loss history and location, the average annual price for general liability insurance for businesses in the advertising, public relations and related services industry with NAICS code 5418 is estimated to be around $2,000 – $5,000 per year. Rates may be higher for larger agencies with more employees and revenue.

Estimated Pricing: $2,000 – $5,000

Commercial Property Insurance

Commercial property insurance is an important part of risk management for businesses in the advertising, public relations and related services industry. It provides financial protection for office property, equipment, protects business income from unexpected losses, and covers the various risks commonly faced including property damage or loss, business interruption, liability and other exposures. Businesses in this industry rely on a variety of property for their daily operations, including office equipment, computers, electronic devices and vehicles. It is crucial to have comprehensive commercial property insurance in place.

Category List
Benefits
  • Protection against financial losses from damages to office property and equipment due to events such as fire, flooding, and storm damage
  • Coverage for legal liabilities if a client/visitor is injured on your premises
  • Replacement or repair costs if office property is damaged or destroyed
  • Financial protection for loss of business income if office must close temporarily for repairs after a covered loss
  • Reimbursement for extra expenses like temporary office rental if your current office is uninhabitable after a covered loss
  • Coverage for employee tools and technology used off-site for clients such as laptops, cameras, phones
  • Protection for property in transit if shipping samples or materials between office and client locations
  • Insurance payments can be used to make upgrades or additions to your property after a loss to improve security or reduce future risk of damage
  • Deductibles are often lower than trying to pay for repairs, replacement or lost income out-of-pocket
  • Policy can cover property during periods of remodeling, renovation or construction work at your premises
  • Coverage for damage to others’ property you are temporarily responsible for such as client property, samples or goods in your care, custody or control
  • Insurance supports property value and collateral for business loans/lines of credit
  • Policy is designed for commercial needs with broader coverage than typical homeowners policies
Use Cases
  • Coverage for damage or loss to office equipment and supplies
  • Coverage for damage or loss to office furnishings and leasehold improvements
  • Coverage for damage or loss to computers and electronic devices
  • Coverage for business interruptions due to property damage
  • Liability coverage for damage to client’s property
  • Coverage for damage or theft of client files, records and contents
  • Replacement cost coverage for property
  • Ordinance or law coverage for building code upgrades following a loss

Based on industry research and analysis, the average commercial property insurance pricing for businesses in the advertising, public relations, and related services industry with NAICS code 5418 is around $1,500-$2,500 per year. This pricing was derived based on typical property values, building characteristics, and risk levels for businesses in this industry which are usually office spaces or studio spaces located in commercial areas. Additional pricing factors may include building size, age of building, security systems, sprinkler systems, fire alarms and other safety features.

Estimated Pricing: $1,500-$2,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protection for both employees and employers in the advertising, PR and related services industry. It ensures employees receive support for any job-related injuries or illnesses without needing to prove fault, while also helping businesses avoid potentially substantial legal and medical costs. Some key benefits of workers’ compensation insurance for this industry include covering medical expenses and lost wages for injured employees, reducing the risk of expensive lawsuits, and helping injured staff return to work through various programs. Pricing for this important insurance is estimated around $1.25 per $100 of payroll based on industry analysis.

Category List
Benefits
  • Protects your business from financial loss if an employee gets injured or becomes ill due to their job
  • Covers medical expenses and lost wages for injured employees
  • Reduces risk of expensive employee lawsuits by providing no-fault compensation for work-related injuries
  • Ensures your business remains compliant with state workers’ compensation laws
  • Provides return-to-work programs and rehabilitation services to help injured employees recover
  • Premiums may be tax deductible as a normal business expense
Use Cases
  • Protecting employees from injury or illness caused by their jobs, such as injuries from operating machinery or exposure to hazardous materials
  • Covering medical expenses and lost wages for employees who are injured or become ill due to their job
  • Providing income replacement for employees who are unable to work due to a work-related injury or illness
  • Paying benefits to families of employees killed on the job

Based on industry data and analysis, the estimated average pricing for workers’ compensation insurance for businesses in the advertising, public relations, and related services industry with NAICS code 5418 is around $1.25 per $100 of payroll. This price was derived from comparing payroll amounts and insurance premiums paid by similar businesses in this industry. The risk factors for this industry tend to be lower than other industries due to the office nature of the work. Therefore, the estimated price per $100 payroll offered here is on the lower end compared to other industry codes.

Estimated Pricing: $1.25/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage protection for businesses that utilize vehicles as part of their daily operations, such as those in the advertising, public relations, and related services industries. Some key benefits of commercial auto insurance for these types of companies include covering legal liability from accidents, paying for vehicle repairs, and covering medical bills for those injured in insured vehicle accidents. It is commonly used to insure company-owned, rented, or employee-driven vehicles used for meeting clients, presenting work, transporting equipment, and other business purposes. The estimated average annual premium for a business in NAICS 5418 industry (advertising and public relations) is around $1,500 based on typical fleet sizes and usages of 1-3 locally-used vehicles.

Category List
Benefits
  • Covers liability from automobile accidents
  • Pays for physical damage to vehicles from accidents, vandalism, or natural disasters
  • Covers medical bills for those injured in an accident involving a company vehicle
Use Cases
  • Covering company-owned vehicles used for business purposes like client meetings, presentations, site visits, and transporting equipment
  • Providing coverage for vehicles rented or leased for short-term business use
  • Insuring vehicles driven by employees for work purposes

Based on industry data, the average pricing for commercial auto insurance for businesses in the advertising, public relations, and related services industry with NAICS code 5418 is around $1,500 per year. This estimate is derived from considering average vehicle values, average miles driven, and average claims for this type of business which usually involves 1-3 vehicles used primarily for local client visits and meetings. Fleet sizes are usually small with low annual mileage.

Estimated Pricing: $1,500

Cyber Liability Insurance

As an advertising, public relations or marketing agency, collecting and storing sensitive client data leaves you at risk of costly cyber incidents without proper protections. Cyber liability insurance can help cover expenses from events like data breaches, lawsuits, network outages and more to keep your business running smoothly. It protects against financial losses if critical systems are compromised, reimburses notifying clients of breaches, and defends against lawsuits over privacy violations or third party attacks. Pricing is estimated between $3,000-$5,000 annually based on your organization’s size and security practices.

Category List
Benefits
  • Covers costs of data breaches, ransomware attacks, privacy violations and more
  • Protects against cyber related lawsuits and legal fees
  • Reimburses costs to notify affected clients of data breaches
  • Pays for credit monitoring services for clients after a data breach
  • Covers costs of forensic investigations, content restoration, and crisis management after a cyber attack
  • Covers business interruption costs if you have to shut down due to a cyber attack
  • Provides access to legal advisors, public relations consultants and IT experts after an attack
  • Covers damages and theft of third party data in your care, custody and control
  • Covers reputation management costs to restore your business’ image after a cyber attack
Use Cases
  • Data breach response from third party attackers or employee errors
  • Network security failures leading to data loss
  • Cyber extortion from ransomware attacks
  • Defending lawsuits from clients for loss or theft of private information
  • Damages and fines from privacy regulation non-compliance like GDPR
  • Loss of income or extra expenses from an outage or attack bringing systems offline
  • IP theft or confidential data leakage from insufficient access controls

Based on typical risk factors and average claim amounts seen in this industry, the estimated annual pricing for cyber liability insurance would be between $3,000 to $5,000. Factors such as number of employees, annual revenue, IT security practices, and claim history help determine the final pricing. For an mid-sized agency with 30 employees and $5M in annual revenue, no major past claims, and adequate security protocols, an estimated price would be $3,500 per year.

Estimated Pricing: $3,500

Media Liability Insurance

Media liability insurance is an important policy for businesses working in creative and communications fields like advertising, public relations and related services. This type of insurance protects against costly lawsuits that may arise from errors and oversights in published or broadcast content.

Some key benefits of media liability insurance for businesses in these industries include covering claims relating to libel, slander, copyright or trademark infringement from promotional materials. It also protects from unintended intellectual property infringement and lawsuits over website, social media or other content. Media liability insurance is especially important for these types of businesses due to the risks of privacy issues around how client or individual data is collected and used.

Category List
Benefits
  • Covers claims relating to libel, slander, copyright or trademark infringement arising from advertising/promotional material
  • Protects from lawsuits over unintended intellectual property infringement including copyright, trademark or patent protection
  • Covers legal costs and damages if sued over the content of websites, social media, print or broadcast advertising
  • Protects public relations and crisis management firms from claims over advice provided to clients
  • Covers reputational damage from a PR crisis over misleading or inaccurate information provided by the firm
  • Protects creative/design firms from lawsuits over unauthorized use of images, text or other media included in work for clients
  • Indemnifies costs associated with having to retract or modify promotional materials due to unintentional factual errors or omissions
  • Reimburses fines or legal penalties from regulatory bodies over advertising/promotional campaigns that inadvertently violate industry codes or standards
  • Compensates lost income if the firm has to pause client work during a covered legal proceeding
  • Includes coverage for defense costs even if claims are ultimately determined to be without merit, removing financial risk of spurious litigation
Use Cases
  • Defending against libel or slander claims from published or broadcast media
  • Defending intellectual property claims such as copyright or trademark infringement
  • Covering costs and legal fees associated with content takedown requests
  • Covering liability claims from media placements or endorsements
  • Covering reputational or financial damages from incorrect information published or aired
  • Defending against privacy/confidentiality claims about how client or individual data was handled

Based on analyzing typical pricing factors such as business size, revenue, number of employees, location, claims history and other risk factors, the estimated average annual premium for media liability insurance for businesses in this NAICS code is around $3,000-$5,000. Premiums are usually calculated as a percentage of payroll or revenue. Larger agencies with over 50 employees and $5M+ in annual revenue would likely pay around $5,000. Smaller agencies with under 10 employees and under $1M in revenue would pay around $3,000.

Estimated Pricing: $3,000-$5,000

Conclusion

Choosing the right mix of insurance protection is important for every business, but especially those in advertising, PR and communications fields given the risks involved. Proper insurance can help firms focus on running their business without worry of costly lawsuits or property damage bringing operations to a halt.

Frequently Asked Questions

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