Advertising Injury Claims Coverage

Advertising Injury Claims Coverage for Small Businesses

Business owners know how important it is to protect their operations from legal liability, and advertising injury claims coverage can help. This type of insurance policy can provide protection from claims related to libel, slander, copyright infringement and invasion of privacy due to advertising materials.

Understanding Advertising Injury Claims Coverage

When considering a small business’s insurance needs, leaders should understand what types of advertising-related occurrences are covered by advertising injury claims coverage. Generally, this coverage protects against expenses associated with claims that involve the use of copyrighted material without permission, libel or slander due to false statements in advertisements or invasions of privacy caused by advertisements. This type of progressive coverage includes legal fees associated with defending against these types of claims as well as any potential damages awarded in an adverse court decision. 

Costs Associated With Advertising Injury Claims Coverage

Fortunately, the cost of this type of insurance is relatively low when compared to other forms of commercial liability policies. According to Insureon, most policies offer $1 million worth of protection for approximately $50/month for small businesses with under 10 employees; however, costs can vary depending on the company’s industry and size. Additionally, larger companies often require higher limits for more appropriate risk protection and will pay slightly more for the increased benefit. 

The Benefits That Come with Advertising Injury Claims Coverage 

Having advertising injury claims coverage helps business owners remain confident that they have adequate protection against potentially costly litigation stemming from false or misleading statements made through marketing collateral like printed literature and online ads and social media posts. In addition to providing peace-of-mind assets are protected and reducing stress over financial ruin due to a lawsuit this insurance can also limit reputation damage associated with these types of cases since most policies include PR counsel services if needed. In some instances, this type of protection may even be required by law before a business can legally advertise its services; thus making having a policy all the more essential in some industries. 

Overall, small businesses need advertising injury claims coverage in order to protect their operations from expensive lawsuits related to libelous statements made in advertising materials or allegations that their products or services infringed upon another party’s intellectual property rights via marketing efforts. With relatively inexpensive premiums associated with these policies most business owners find it worthwhile to invest in this type of insurance as an added layer between them and potential financial disaster from unforeseen lawsuits brought about by aggressive branding techniques.