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5 Replies Latest reply: Aug 22, 2008 10:49 AM by Iwrite RSS

Business insurance for a direct marketing agency?

BubbawithaB Newbie
Currently Being Moderated
After 15 years in the business, I recently cofounded a database/direct marketing agency, where we (currently) provide strategy and analytics-- basically knowledge, planning and modeling/stats work. Signed our first national brand 2 weeks ago for some planning work and have eyesight to signing a major retailer in the next 3-4 weeks for targeting and mail campaign development.

We will expand to actually creating and producing the mail/websites as soon as we get a paying client who will take a chance with us. :) At that point, we will take on more risk if, say, we or our vendors mess up the physical mail piece. Example: a previous employer once had to destroy 175,000 pieces of mail because of an error on the piece that was missed in QC.

For this kind of thing, does it make sense to take our business insurance? I am guessing not-- seems like a business risk rather than an indemnification type liability, but being unfamiliar w/business insurance, I'm hoping someone here can answer the question:

What does biz insurance cover and when does it make sense to take on?
  • Re: Business insurance for a direct marketing agency?
    TLRInsnAcc Novice
    Currently Being Moderated
    Most of the time when I hear the term business insurance; it is speaking of the following:

    General Liability
    Worker Compensation
    Key Worker Insurance
    Disabiblity Buy-outs
    Employee Benefits
    and things along this line!

    Should you have additional questions feel to review my website and if you need to you can contact me from my site!

    I hope the best for you and your company

     

    Mr.Roberts
    TLR Insurance, Inc
    www.tlrinsurance.com
  • Re: Business insurance for a direct marketing agency?
    Iwrite Master
    Currently Being Moderated
    BubbawithaB,

    I have had performance bonds but never insurance that covered mistakes in production. Usually, the party responsible for the mistake eats the costs for reprinting. Most of the advertising agencies have created a small fund for moments exactly like this. That is part of my contingency fund's purpose.

    Business insurance always makes sense but I didn't think it covered things like this. I may be wrong.

    This is one of the reasons, I work with a small group of vendors, I cannot afford for big mistakes. My vendors know me and my standards, they understand that if there is a mistake that I am responsible for - I cover the costs but if it is their fault I expect them to do the same. I have a set of safeguards in place, including having a professional editor/proofer go over any and all pieces. The more eyes on the project, the more likely mistakes are to be caught before they go to press. I believe in the press check.
  • Re: Business insurance for a direct marketing agency?
    LUCKIEST Master
    Currently Being Moderated
    Business insurance for a direct marketing agency?? Welcome

    I believe that everybody in Business should have an Accountant, A Lawyer and an Insurance Agent.
    You say that you have been in business 15 years. Do you have an Accountant??

    "What does biz insurance cover and when does it make sense to take on"? Talk to the professional
    and hear his / her side of the story (sales pitch) and then make an intelligent decision.

    Also go to Members page and tell where you are.

    Good luck, LUCKIEST

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