Learn what insurance policies are vital for a marketing agency to thrive in the next decade.
When it comes to insurance, there are certain policies that all small businesses must have in place. However, there isn’t a one-size-fits-all answer for all industries. Some industries will require specific insurance policies that are redundant in others.
Today, we’re going to look at what kind of insurance a marketing agency should get.
Health Insurance for Employees
In an industry where you deliver services, taking care of your employees is vital. After all, they’re the heart of your business! However, for small marketing agencies that are in a growing stage, offering a comprehensive health insurance plan might be cost prohibitive.
“From a business owner’s perspective, the issue is that a lot of the private plans have really gone up in costs,” says Mike Rowan from marketing agency KPI Target. “This has been prohibitive to be able to provide those plans, similar to a large corporation, to employees. It has also forced us to get more creative.”
In such cases, you could offer a basic health plan, which is supplemented by bonuses and raises that employees can put towards individual health plans in case they need higher coverage.
However, keep in mind that comprehensive health insurance plans can be an effective employee retention technique. After all, many people rely on group plans to provide health insurance for their families.
Errors and Omission
Insurance for errors and omissions is a must for companies that provide services for two reasons.
The first is any alleged harm or damage. When you’re in the business of working with brand names and brand reputation, the definition of damage is subjective. Any client can file a lawsuit if you or your employees are alleged to have improperly rendered professional services. In such cases, errors and omission insurance protects you from the financial damage.
Secondly, having such insurance is essential if you want to grow and work with bigger and better clients.
“There is a lot of potential for error, for people to come after you from a legal perspective,” says Mike. “You really need to protect yourself, especially when you start to deal with some of the larger companies. A lot of your Fortune 500 companies require that you have this type of insurance before you can even enter an agreement with them.”
It might be smart to get umbrella insurance if your agency hopes to work with bigger clients. Some more prominent firms might have that as a requirement, but even if they don’t, it provides an additional layer of security for your business.
The category of cyber insurance is new, but the threat certainly isn’t. According to Accenture, security breaches increased by 67% in the last five years, and each cyber-attack lasts, on average, for 314 days, states a report from IBM. That translates into loss of revenue, data, and reputation.
Cyber insurance is designed to help companies get through a cyber-attack with minimal losses. There are few standards for what cyber insurance should include. To make the most informed choice, you should consult a cyber security specialist. They will be able to tell you what your biggest risk areas are. The three main areas that need to be assessed are:
- Potential reputation damage to your clients
- Data recovery costs
- Any government regulatory fines
Before your company can apply for cyber insurance, certain standards of security must be met. Each insurance firm has its own list, which can typically be found on its website.
Shop Around for Different Types of Insurance
It might be tempting to turn to one provider to get all the insurance you might need, especially when you’re not sure what sort of coverage you might need, as in the case of cyber insurance. However, for a small business, it may be beneficial to allocate some time to research and get a bundle of different plans instead.
“We’ve found success bundling together different options, which I’ve found to be pretty appealing from a cost and coverage perspective,” says Mike.
Additionally, if you have multiple offices in different states, a group plan might not be an option as plans vary greatly from state to state.
Getting Insurance: Where to Start
Before you talk to any insurance specialist, it’s a good idea to get an overview of all your tangible and intangible assets that need insurance. A back office software such as FINSYNC can help you to get a better understanding of your business because it provides you with an all-in-one overview of cash flow, accounting, and payroll.
A comprehensive overview will make it easier to communicate to an insurance agent exactly how your business operates. In return, they will be able to recommend the type of coverage that is right for your marketing agency.