What would you do if you were hit with a liability suit for more than your current PR firm insurance covered?
Thankfully, here at InsuranceHub, we have experience helping PR agencies that get their clients featured on websites, newspapers, magazines, radio and TV programs. We understand the risks that come with promoting your clients and making them seem as successful, honest, important, exciting or relevant as possible. We also understand that not all press is good press.
We understand the risks that come with:
- Crisis public relations strategies
- Social media promotions and responses to negative opinions online
- Writing and distributing press releases
- Creating special events designed for public outreach and media relations
- Conducting market research
- Speech writing
- Write pitches and sending them directly to journalists
- Expansion of business contacts via personal networking or attendance and sponsoring at events
- Copywriting and blogging for the web
Types of exposure that PR agencies need to protection from:
Property exposures: This is probably limited to your office. If you have expensive equipment for the production of photographic, graphic design, audio, visual or art work for your clients then be sure to talk to your agent about this.
Your biggest concern here is fire water and smoke damage. Invest in a monitored fire alarm system and a sprinkler system to minimize loss. Do your employees have company supplied lap top computers and display equipment? Talk to your agent about this.
Equipment breakdown exposures: Your biggest concern here is most likely heating and air-conditioning equipment. If your climate control systems breakdown your artwork can be ruined.
Crime exposures: This basically means you should be concerned about employee dishonesty. You most likely have access to your clients' proprietary information, trade secrets, lists of customers as well as the personal information of the clients, their employees or customers.
That is why the smartest PR firms do back ground checks on all of their employees. Have a system to monitor and protect all client information. Use different employees to deposit, bill and disburse funds. Annually do an audit of your books. Regularly do a an equipment inventory as well.
Inland marine exposures:
- Accounts receivable for unpaid balances.
- Bailees' customers for any client property that you are in control of
- Valuable papers and records. THINK about this... Your clients' records and art are typically originals that are almost impossible to replace or re-create. Keep originals in fireproof cabinets and create duplicate copies that you keep off site for protection.
- Talk to your agent about a special floater if any of your property is taken to off-site production locations.
Premises liability exposure: Do you have clients that come to your office location? If so, clients must be kept in waiting areas and designated conference areas. Ensure that all areas are well maintained including floor coverings.
You also may face off-premises exposures when your employees do sales visits, training sessions, and photography and filming of advertising materials. Remember to be careful when off site so the public doesn't get hurt.
Professional liability and advertising liability exposures: Risk factors include:
- How the product / organization is advertised
- Promises made on behalf of the product / organization
- How it will perform
- Potential copyright or trademark infringements
- Negative statements made about competitors.
Automobile exposure: Do you rent vehicles for employee use? Do you supply vehicles to employees?
- Are there clear written procedures regarding personal use by employees and their families?
- Do you take age, training, experience, and records of each driver into consideration when selecting drivers?
- Do you take age, condition, and maintenance of the vehicles into consideration?
- Do you ever rent cars overseas for your PR work?
Talk to your agent about each of these answers you come up with.
Workers comp exposures: We find that ergonomically designed workstations may be reduce eyestrain, neck strain, carpal tunnel syndrome, and similar repetitive injuries.
Some PR firms require off-site work for sales presentations. This may lead to extensive traveling both inside or outside the United States. If employees are working out of the country or overseas, the potential for them getting hurt can be very high. If a worker is hurt in another country, the cost of sending them home could be very high. Talk to your agent about the need for special foreign coverage.
Here is the minimum recommended PR agency insurance coverage:
- Business Personal Property
- Business Income with Extra Expense
- Employee Dishonesty
- Money and Securities
- Accounts Receivable
- Bailees' Customers
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Professional and Advertising Liability
- Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation
Other PR Firm insurance coverage to consider:
- Equipment Breakdown
- Computer Fraud
- Special Floater
- Employment-related Practices Liability
- Business Automobile Liability and Physical Damage