Ensuring your professional protection: Why marketers need insurance
- 11 November 2019
- 164 views
It might not be top of your list, but professional insurance is not just a safety net for when you have a bad day at work, it is a pillar that shows you can be trusted in the business world.
What do you need insuring against?
Marketing is a department that has grown in recent years, taking on more responsibility and more headcount as it starts to belatedly gain influence in the boardroom. As marketing departments continue to be the customer champions of business, they also face the tribulations of dissatisfied clients and disgruntled customers, where even an unfounded claim, brought to avoid or delay payment, costs time and money.
Marketing consultants are often required to give expert advice on a variety of matters in an ever-changing industry. Sometimes the best advice becomes faulty in the execution, while poor advice can result in financial loss to the client. Marketers need insurance, because a bad day at the office means so much more in a department that interacts with all other areas of the business.
However, insuring yourself against the dangers of the profession goes beyond simply protecting your customers. It’s part of making your business whole. System crashes and network breaches continue to make the news, but the more immediate effect of new legislature, such as GDPR, means that marketers have to get to grips with expansive rules and regulation surrounding data, best practice and working standards. Though it is often sold as a protection against your company’s ‘good name’, on a practical level, it can often be a safety net that allows your business to function.
What are the individual threats?
Threats are a combination of factors that could leave you vulnerable to legal action. These can include:
- Where you are alleged to have done something wrong through your provision of services, for example the client doesn’t like your work and believes it has adversely affected their business.
- Your material is alleged to breach comparative advertising regulations.
- You are alleged to have breached confidentiality, or otherwise misused information.
- You are alleged to have breached a license to use someone else’s copyrighted material.
- You are owed fees, but the client tells you that if you pursue this, they will sue you for negligence.
- A complaint is made to the Advertising Standards Authority and you incur costs (or the client holds you responsible for the costs) of withdrawing the content.
This is not even the whole story. With the dominance of digital communication, crime online has skyrocketed. In cybercrime alone, the potential threats to business cover general emails to highly targeted scams seeking out CEOs. These can include:
- Phishing – Marketers spend a lot of time communicating via email or on the phone, and are susceptible to fraudsters getting in contact and asking for financial details, in a variety of ways. If fraudsters get even a small amount of detail, it has been known for banks to take that as authorisation.
- Malware theft – A London-based modelling agency was once conned out of more than £1 million due to simply clicking on an email and providing financial information. We can’t be blind to the fact that, at work and at home, marketers are vulnerable to this threat.
- CEO fraud – It’s fairly common for fraudsters to impersonate those at the top to trick those lower down the ladder into giving away big sums. By impersonating an email from senior management, usually when they are on holiday and unavailable, requesting cash to pay a new supplier, fraudsters have made off with plenty of unearned income from businesses.
These are just a small sample of the threats facing businesses in the modern age. All, at some point or another, have worked and left businesses out of pocket.
What does having insurance mean?
Any allegation against you will not leave you unscathed; settlement is a risky process and ignoring it is not an option. As any allegation has to be defended, or at the very least processed, you will undoubtedly waste time, money and expertise seeking a solution. For some businesses, they may not have any of these available.
This is what professional indemnity insurance provides. It allows you to concentrate on your work whilst a third party provides the expertise that will, ultimately, save you money.
The CIM offer
That’s why CIM have arranged a special deal for members that includes broad based Professional Indemnity Insurance and Third-Party Cyber Liability Insurance, with optional offerings of Public and Employers Liability at a competitive additional premium, on an easy-to-use online quoting system. Going further than this, cyber cover is included for free; because the threats marketers face now are no longer restricted to the offline world.
Thanks to Tailor Insurance Services and the TM HCC partnership, CIM members can now obtain an instant quote for a selection of limits, with the added option of extending your cover to include Public Liability and Employers Liability all under one policy. Find out more about the offer, which is exclusive to CIM members, and take a vital step towards insuring your future.
Tailor Insurance was set up to concentrate on personal relationships and customer experience with every client. Experienced and professional with 26 years of representing and advising on financial interests of clients from independent start-ups to multimillion-pound turnover professional service corporations, they are an FCA regulated intermediary, with empathetic expertise in addressing the challenges confronting professionals, from accountants to zoological consultants.
- 164 views