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AE College: Spring

Professional Liability Insurance (Errors & Omissions) - worth it?

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5 posts
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Cheryl Roberts
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Is it worth is as a marketing agency to have an errors & omissions policy?  Do you have one?  Why or Why Not?  I'm not sure I see the need.

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JeffKlingberg
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Very good question Cheryl. I don't have a good answer for you. I'm trying to figure that out as well, especially since receiving a mailing from the SecondWind insurance company. Here's another part of that question. Can you get a quote/estimate without having to file an application?

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lauriekay
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Hi Cheryl:

Many agencies live without E&O unless they are required to have it under contract with a specific client. Keep in mind that E&O only goes into effect if you are sued by a third party for damages. It will not cover the cost of a brochure re-print for an error or omission on your part that is simply a mistake.

Having insurance is always a good idea and E&O is meant to protect agencies in the event something they do harms another individual or organization. However, if you feel your exposure is quite low, you may go without it and simply be self-insured.

Jeff mentioned our E&O partner above so you may want to give them a call to discuss the benefits of E&O and decide whether it's for you. Collector's Risk, Ken Foster, 800-414-2929.

Also, Jeff, our partner allows you to receive a quote for E&O using a shortened application but I do not know of a company that will provide a quote with no application. They base your premiums on your size and potential exposure so they need that information to provide an accurate quote.

Hope this helps.

Laurie

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DebB_SW
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Professional Liability Insurance, or E&O, is a big expense for most smaller ad agencies. We wrote an short article on the topic. The biggest reason to get it would seem to be if a client requires you to carry it. Please give us a call to learn more about it, or contact our marketing partner at Collector's Risk for a direct conversation. (Remember to mention you are a Second Wind member.)

http://www.secondwindonline.com/do-you-need-professional-liability-insurance

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DebB_SW
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Another article from our legal partner, Sharon Toerek at Toerek Law, with some advice about negotiating with clients who want you to commit to carrying E&O coverage:

https://www.legalandcreative.com/2015/02/the-5-things-every-marketing-agency-should-look-for-in-the-clients-contract/

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