Advertisers Liability Insurance

What Does Advertisers Liability Insurance Mean?

Advertisers liability insurance is a type of coverage that protects advertising companies in the event they are sued for slander, defamation of character, libel, copyright infringement, or other offenses. It is usually purchased as part of a broader advertising agency insurance package, since agencies face risks that a standard business policy doesn’t fully address. This insurance will cover these liabilities up to a specified amount. If the losses exceed the policy limit, the policyholders will be responsible for covering the additional costs.

Insuranceopedia Explains Advertisers Liability Insurance

Advertising companies often purchase advertisers liability insurance because they run numerous ads, and there is always a risk that an ad could lead to a lawsuit. This can occur if a false claim is made or if another company believes the ad infringes on its copyright, among other issues. Whatever the situation, advertisements can sometimes result in lawsuits. Advertisers liability insurance serves as a way for advertising companies to mitigate the risk of losses from such lawsuits. Most agencies carry it alongside a general liability insurance policy, which handles the bodily injury and property damage claims that advertising-specific coverage doesn’t include. What an agency pays for this protection depends on its size, the type of clients it works with, and the volume of ad work it produces, and these are some of the factors that drive advertising agency insurance costs.