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  • Writer's pictureJoyce Insurance

Guaranteed Ways to Protect Your Advertising Agency from Lawsuits



As an advertising agency, avoiding lawsuits is crucial if you want your business to stay afloat. Aside from the financial losses, lawsuits can tarnish the credibility of your agency. New York has hundreds, if not thousands of advertising agencies. If yours has a bad rep for lawsuits and errors, clients can easily do business with another agency.

Professional liability insurance is your safety net when it comes to these lawsuits. By having this coverage, you will be able to pay off legal fees, settlements, and other payments that accompany legal disputes. However, the best way to protect your business is to avoid lawsuits entirely. Here are some ways you can safeguard your business against such cases.


Clear Contracts

Your contract with your client is the most crucial document in your partnership. This dictates every aspect of your business relationship. Many legal cases against ad agencies are even sued for breach of contract. This is why it’s necessary for a group of legal experts to cite the contract first before having a deal with your client.

Some of the essential elements that your contract should have are:

  1. The legal names and addresses of the businesses involved in the contract

  2. Duration, deadlines, and important dates

  3. Financials such as budget for ad campaigns and payment schedules

  4. Services to be provided, types of campaigns, etc.

  5. Termination of contract

  6. Breach of contract for both parties

  7. Intellectual property rights/ownership of created media

  8. Potential issues like revisions, approvals, etc.


Having a contract that benefits both parties is essential to avoid lawsuits, but that’s not all. You must also do your part of the agreement within a given deadline. Failing to comply with deadlines, quality of work, or even results may cause you legal backlash.


Client Communication

Clear communication gets your client to trust you more as it provides transparency and progress. Legalwise, communication can save you from a lawsuit. For instance, you can inform your client of the progress of your campaigns. If there are roadblocks toward your goals, your client is informed, and you can take necessary actions.

You can also show the clients the current progress of a video, infographic, or any other media you create before a campaign launch. Not only does this make the client feel empowered, but It also gives you the opportunity to make adjustments.

When communicating with your clients, it’s best to have all communications documented through recording, letter, or email. Proof of communication can save you from a lawsuit if ever needed. Also, it is a great reference point.


Quality Control

Of course, the best way to avoid lawsuits from your clients is to deliver high-quality work in your advertising agency. The best way to do this is, of course, to hire experts who have a keen eye on their respective fields. Not only does it save you from lawsuits, but your ad agency also becomes more productive if you have a team of competent individuals.

But of course, you also need a team that can double-check everything. Mistakes do happen in advertising, but you don’t want yours to cost a thousand dollars. So, before publishing anything in any traditional or modern media, it is best to check if a campaign aligns with a brand’s image and tone.


Get Professional Liability Insurance From Joyce Insurance

There are times when mistakes can happen in your ad agency. After all, we’re human! In these situations, it’s better to have professional liability insurance to provide you coverage in case such scenarios happen.


For over two decades, Joyce Insurance Agency has been a trusted name in Rockland, Westchester, Orange, Bergen, Bronx, and New York regarding commercial and personal insurance. As we treat our customers like family, we make sure to protect your business from major financial losses.


Call us at 845-942-7200 or get a free quote today!

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