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Direct Marketing Professional Indemnity Insurance

Direct Marketing Professional Indemnity Insurance

Direct Marketing, including the use of mail shots is perceived by the Professional Indemnity insurance market as a particularly high risk type of activity. The insurance market has experienced a number of claims in this area and although they tend to be relatively small… typically between £ 15- £ 50k they do tend to be relatively frequent. Insurers will tend to ask specific questions in relation to the procedures in place and the size and types of mailing typically sent out.

As an example of a typical claim:

A direct mailing firm produced wrongly addressed mailing and incomplete mailing packs. The claim against the insured was eventually settled by the Professional Indemnity insurers at £ 120,000.

If this had been your firm and the claim had been made against you would you have the financial means to defend such a claim? Think about the costs involved in recruiting a specialist firm of solicitors to defend your position? Think about the opportunity cost involved and the amount of time that you would have to spend on this when really all you want to do is get on with running your business !

A suitable Professional Indemnity policy can take care of all this for you and give you the peace of mind that you are covered in the event of a claim against you for professional negligence.

A typical Media Professional Indemnity policy wording would therefore provide cover for;

  • Breach of civil liability
  • Negligent act error or omission
  • Negligence of sub-contractors
  • Irrecoverable fees
  • Rectification and loss mitigation costs
  • Bodily injury or property damage arising from breach of professional duty
  • Defence costs
  • Court attendance costs
  • Unintentional intellectual property rights infringement (other than patents)
  • Unintentional breach of confidentiality
  • Unintentional defamation
  • Loss of third party documents or data
  • Computer virus transmission

It is particularly important for a ‘Media’ professional to be on the correct policy wording that includes rectification and irrecoverable fees cover. Marketing ,Media, Advertising and Communications Professionals are particularly vulnerable to claims of negligence for simple errors such as typos. Professional Indemnity policies normally require that a third party has already suffered a financial loss arising out of the negligent act ,error or omission of the insured before a valid claim can be made.

In reality Media professionals will normally be in a position to fix the problem before it ever becomes apparent to their client. The end result is no third party claim for damages and therefore, under most policy wordings, no valid Professional Indemnity claim.

For this reason, it is essential that a suitable media wording is bought that includes cover for rectification and irrecoverable fees- also referred to as ‘first party ‘ cover.

Hensure Business Insurance has access to a number of Professional Indemnity Insurers who can underwrite the Professional Indemnity risk for a Direct Marketing Consultant at a very competitive premium with wide levels of cover.

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