Advertising agencies professional liability is another name for E & O, or Errors and Omissions. This insurance is specifically available to help protect you when professional mistakes are made, or claimed by your clients. If you make a professional mistake that costs your clients money, or if your clients think you made a professional mistake that harmed them, they will sue your company for the damages.
For example, if you create a magazine advertisement for a customer and use a photo of children in the ad, that photo must have specific releases. If it does not, your client can be sued for using the photo for commercial purposes. If the client feels your company made a mistake in using unauthorized photos, they may sue your company for the damages they suffer. Whether your company is actually at fault or not, you will spend time and money defending yourself against these legal actions. Advertising agencies professional liability insurance helps protect you from the financial and legal impacts that arise from suits of this sort.
Depending upon the scope of your policy coverage, your advertising agencies professional liability policy can pay the legal bills that arise due to lawsuits. It can also pay settlements, judgments or awards when needed, and it can cover your lost wages from time away from work when dealing with the legal proceedings.