Your agency is one mistake away from a million-dollar lawsuit

Most digital marketing agency owners carry General Liability (GL) insurance and assume they’re good to go.

But here’s the truth…

GL only protects you from physical incidents, such as a client tripping in your office or accidental property damage.

What it doesn’t cover is the real danger to your business: unexpected professional mistakes.

The best insurance against this is to be amazing at your craft and do great work. But, sometimes, the unexpected happens and is beyond your control.

Let’s say your SEO work tanks a client’s rankings or your ad content gets flagged for copyright infringement. Shoot, let’s say you didn’t even do anything wrong, but you’re blamed for something someone else has done. You’ll need to defend yourself, and lawyers and lawsuits ain’t cheap. This represents a financial risk, not just physical harm, and GL won’t touch it.

You need a fallback plan that will save your agency. Enter Errors & Omissions (E&O) insurance.

E&O covers client claims of negligence, failure to deliver, copyright violations, and even missed deadlines. Mature agencies have faced lawsuits for botched campaigns, inaccurate data, and unlicensed content, sometimes with damages reaching hundreds of thousands or more.

GL won’t save you in those cases. E&O will.

Not all E&O policies are created equal. Look for one with media liability, breach-of-contract coverage, and claims-made protection. And make sure your retroactive date covers past work. Otherwise, you’re exposed.

We go deep into risk-proofing strategies like this in The Business of Agency Mastermind. I’ve built three agencies doing $6.5M a year, and I’ve seen what happens when you’re unprepared. Don’t make that mistake. Learn to build a profitable and resilient agency.

Join us at businessofagency.com, before a lawsuit teaches you the hard way.

~ Erik