kyley
10-10-2012, 12:37 AM
Hi All,
First post here - thanks in advance for any help you can provide in this area! I started my second business (previously grew and sold one) about a year and a half ago and have never held insurance. This is one area I know nothing about and I have never felt the need to hold commercial insurance (with my previous and current company, there is very little risk in my work). Anyway, my company is a tiny digital ad agency (just me and some contractors, and I work out of my home) that develops ads for companies and places them on various publisher websites for the purposes of lead generation. I have a contract with a large client that's ready to move forward but requires a lot of specific coverages:
Commercial general liability w/ "AM Best Rating" of A-VI with coverage for personal injury, advertising injury, contractual liability, cross liability and severability. Minimum limits of $1,000,000 per occurrence and $5,000,000 in aggregate.
Umbrella policy (with the same requirements as above)
workers' compensation insurance (even when it's just me?)
an internet / cyber liability policy with coverage for network security liability, privacy liability, media liability, regulatory liability, and notification expense
errors and omissions coverage with a minimum limit of $1,000,000 per occurrence
I've worked in digital advertising for 16 years, but haven't had experience with a company requiring insurance like this. This client is very much ready to get started, but I'm afraid this hurdle may be too high to overcome. An initial quote for all these policies (even just the commercial liability insurance) is way more than I can afford - or at least more than I'm interested in paying (all the policies would take up 100% of current net revenue - that is to say, my salary)... I fear that even trying to negotiate with them on this issue is going to throw up red flags and make my company appear too small and unsophisticated for them (though I'm certain I can do great work for them).
So now to my questions!
How would you suggest I address this with the company? Might I have success in pushing them to completely remove this requirement? Are there compromises I can offer?
If I try to get some basic coverage, are there some options for really inexpensive insurance just to meet the client's needs (considering again that I really have minimal risk in my work).
Anything else I should be considering here? Are there other options I can look at?
On a related note, the contract also calls for "Access to records" including "all agency books and records as they may relate to the performance of this agreement, and Agency invoices, and supporting documentation pertaining directly to purchases of media." I don't want to make my records available to them - nor my invoices for publisher partners. Any suggestions on handling this issue? Thank you so much for your help,
Kyle
First post here - thanks in advance for any help you can provide in this area! I started my second business (previously grew and sold one) about a year and a half ago and have never held insurance. This is one area I know nothing about and I have never felt the need to hold commercial insurance (with my previous and current company, there is very little risk in my work). Anyway, my company is a tiny digital ad agency (just me and some contractors, and I work out of my home) that develops ads for companies and places them on various publisher websites for the purposes of lead generation. I have a contract with a large client that's ready to move forward but requires a lot of specific coverages:
Commercial general liability w/ "AM Best Rating" of A-VI with coverage for personal injury, advertising injury, contractual liability, cross liability and severability. Minimum limits of $1,000,000 per occurrence and $5,000,000 in aggregate.
Umbrella policy (with the same requirements as above)
workers' compensation insurance (even when it's just me?)
an internet / cyber liability policy with coverage for network security liability, privacy liability, media liability, regulatory liability, and notification expense
errors and omissions coverage with a minimum limit of $1,000,000 per occurrence
I've worked in digital advertising for 16 years, but haven't had experience with a company requiring insurance like this. This client is very much ready to get started, but I'm afraid this hurdle may be too high to overcome. An initial quote for all these policies (even just the commercial liability insurance) is way more than I can afford - or at least more than I'm interested in paying (all the policies would take up 100% of current net revenue - that is to say, my salary)... I fear that even trying to negotiate with them on this issue is going to throw up red flags and make my company appear too small and unsophisticated for them (though I'm certain I can do great work for them).
So now to my questions!
How would you suggest I address this with the company? Might I have success in pushing them to completely remove this requirement? Are there compromises I can offer?
If I try to get some basic coverage, are there some options for really inexpensive insurance just to meet the client's needs (considering again that I really have minimal risk in my work).
Anything else I should be considering here? Are there other options I can look at?
On a related note, the contract also calls for "Access to records" including "all agency books and records as they may relate to the performance of this agreement, and Agency invoices, and supporting documentation pertaining directly to purchases of media." I don't want to make my records available to them - nor my invoices for publisher partners. Any suggestions on handling this issue? Thank you so much for your help,
Kyle