Question 1

What is a common misconception about Professional Liability (E&O) for Marketing & Advertising Agencies?

Accepted Answer

Agencies think 'we just do marketing.' IP infringement claims (using stock images without proper licenses, music, fonts) are the most frequent professional liability claims at agencies.

Question 2

What happens if marketing & advertising agencies don't have Professional Liability (E&O)?

Accepted Answer

An agency uses a stock photo without proper licensing in a national campaign. Photographer demands $80K + legal fees. E&O pays defense and settlement.

Question 3

What is a common misconception about General Liability for Marketing & Advertising Agencies?

Accepted Answer

GL's advertising-injury coverage is narrower than agencies need — it covers a small set of offenses; media/E&O covers the broader content liability.

Question 4

What happens if marketing & advertising agencies don't have General Liability?

Accepted Answer

Client trips at your office — $12K. GL pays.

Question 5

What is a common misconception about Cyber Liability for Marketing & Advertising Agencies?

Accepted Answer

Agencies handle huge volumes of client customer data — email lists, behavioral data, PII for ad targeting. A breach can trigger client lawsuits.

Question 6

What happens if marketing & advertising agencies don't have Cyber Liability?

Accepted Answer

Phishing leads to a $48K wire-fraud loss; ransomware then encrypts campaign assets. Total recovery: $190K. Cyber pays.

Question 7

What is a common misconception about Employment Practices Liability (EPLI) for Marketing & Advertising Agencies?

Accepted Answer

Creative culture firms have higher harassment exposure than they expect.

Question 8

What happens if marketing & advertising agencies don't have Employment Practices Liability (EPLI)?

Accepted Answer

Former art director files harassment claim. Defense + settlement: $90K. EPLI pays.

Question 9

What is a common misconception about Directors & Officers (D&O) for Marketing & Advertising Agencies?

Accepted Answer

Holding company structures and outside money trigger D&O exposure.

Question 10

What happens if marketing & advertising agencies don't have Directors & Officers (D&O)?

Accepted Answer

Investor sues principals over revenue projections — D&O defends.

Marketing & Advertising Agencies Coverage Guide | RISKX