Marketing agency insurance

Why marketing agencies need tailored cover

Marketing agency insurance protects your studio from claims that your advice, creative, or digital work caused a client loss, as well as risks like cyberattacks, data breaches, office incidents and equipment damage. It is a set of policies that work together rather than a single product. For most agencies, the core is professional indemnity and cyber cover, supported by public liability, employers’ liability, and property or contents insurance.

In early 2025, average UK insurance rates fell overall, including notable declines across property and cyber. Professional and financial lines also became more competitive, with broader coverage available from a wider pool of insurers and MGAs. For agencies, this can translate into more affordable and more flexible options. At the same time, many UK SMEs remain underinsured or uninsured, and cyber claims continue to rise. That combination of lower pricing and higher exposure makes now a sensible moment to review cover levels and close gaps.

Insurance can offer real financial protection, but only when you understand what is covered and where it is not. This guide explains the main policy types for agencies, what they typically include, common exclusions, and what to expect if you need to claim. We use plain English so you can weigh up cover based on facts, not assumptions.

Good insurance supports confident decision-making. It should be proportionate, transparent, and aligned to your real risks.

What is covered in practice

Professional indemnity responds when a client alleges negligence, error, or omission in your work. That could be a flawed PPC strategy that wastes budget, an inaccurate attribution model that misguides spend, or a missed compliance check that triggers a client fine. Policies usually cover legal defence, settlements, and damages up to the limit you choose. Intentional wrongdoing, known contractual guarantees of performance, or work done outside your declared services are commonly excluded.

Cyber insurance typically covers incident response, data breach costs, legal and regulatory support, ransomware negotiation and restoration, and sometimes business interruption after a cyber event. Claims may be limited if basic controls are not in place, such as MFA, patching, or backups. Criminal acts by directors or failure to meet minimum security warranties can void parts of cover.

Public liability addresses injury to third parties or damage to their property at your premises or when visiting clients. Employers’ liability is a legal requirement if you employ staff in the UK. Property, contents, and portable equipment protect your office fit-out, laptops, and devices against defined perils like theft or fire. Business interruption can help with lost income following insured damage. Claims are assessed against your policy wording, your disclosures at inception, and evidence you provide, such as contracts, scopes of work, security logs, or asset registers.

Who benefits most

This cover suits marketing and advertising agencies of all sizes, including digital, performance, SEO, content, creative, media buying, PR, and analytics consultancies. It is particularly relevant if you manage budgets, process personal data, run paid media campaigns in highly competitive sectors, or provide strategic advice that clients rely on commercially.

Freelancers and micro-agencies can also benefit, especially where they subcontract or access client systems. If you do not handle client data, do not advise on spend, and your work has minimal financial impact, you might select lower limits or fewer components. The goal is proportionate protection that reflects the scale and nature of your projects.

Choosing a level of protection

1. Core bundle - essentials for most agencies

   • Professional indemnity: £1m to £5m limit typical for mid-sized agencies.
   • Public liability: often £2m to £5m.
   • Employers’ liability: £10m is the UK standard requirement where applicable.
   • Cyber: incident response, legal, forensics, and data breach support.
   • When it fits: client contracts require PI, you manage budgets, or handle data.

2. Enhanced bundle - higher exposure or regulated clients

   • Higher PI limits: consider £5m to £10m where contracts demand it.
   • Cyber with business interruption: covers lost income and extra costs after an attack.
   • Media liability extensions: for IP infringement and advertising risks.
   • Technology E&O extensions: if you build or integrate martech or analytics tools.
   • When it fits: large spend under management, complex data flows, or cross-border work.

3. Comprehensive bundle - complex agencies and networks

   • All of the above plus directors’ and officers’ insurance, crime cover, property and business interruption, and portable equipment worldwide.
   • Contractual liability reviews and bespoke endorsements for sector nuances.
   • When it fits: multi-office agencies, international clients, or heavy reliance on specialist tooling.

4. Optional add-ons to consider

   • Breach response retainer hours and tabletop exercises.
   • Reputational harm coverage after a high-profile incident.
   • GDPR regulatory defence and fines where legally insurable.
   • Increased sub-limit for social engineering or funds transfer fraud.

If rates are softening and coverage is broadening, consider improving limits rather than cutting essential protections.

What it might cost and why

Pricing varies by limit, excess, turnover, client mix, location, claims history, and security posture. Recent UK market trends show overall rate reductions and strong competition in professional and financial lines, with cyber pricing easing for well-controlled risks. Use these conditions to right-size cover rather than underinsuring.

Can you apply and what insurers ask for

Most UK-registered agencies can apply, including limited companies, LLPs, and sole traders. Insurers typically ask for your services breakdown, fee income by activity, largest clients, contract terms, and details of any past claims or complaints. For cyber cover, expect questions on MFA, backups, endpoint protection, patch cadence, and access controls. Property policies may require sums insured for contents, laptops, and any portable equipment.

Applications can be declined or premiums increased if disclosures are incomplete, if there are multiple unresolved complaints, if contracts include broad guarantees of performance, or where security controls are materially lacking. Being accurate and transparent helps avoid issues at claim time and ensures the policy matches your real risks.

From quote to claim - a simple path

1. Gather basic details on services, turnover, staff, and existing cover.
2. Map contracts, client sectors, and the highest-risk deliverables.
3. Complete proposal forms accurately and disclose past incidents.
4. Compare limits, exclusions, and excesses against contract requirements.
5. Purchase the policy and store documents in a secure shared location.
6. Maintain controls - MFA, backups, updates, and staff training.
7. If something happens, notify the insurer or broker immediately.
8. Share evidence promptly and follow guidance to resolve the claim.

Benefits and trade-offs at a glance

Vital checks before you proceed

Review excesses on each policy and confirm they are affordable in a claim. Examine exclusions carefully, especially around contractual guarantees, deliberate acts, cyber control warranties, and territorial limits. Check sums insured for contents and portable devices to avoid underinsurance. Look at any waiting periods for business interruption and how revenue loss is calculated. Pay attention to renewal pricing and any subjectivities that must be completed after purchase, such as improving MFA. Keep copies of your proposal forms and endorsements - your disclosures form part of the contract and are referenced during claims.

Related cover that might fit better

1. Technology E&O - if you build, implement, or resell software or martech.
2. Media liability - if you carry significant IP or advertising risk.
3. Management liability - directors’ and officers’ cover for leadership decisions.
4. Crime and social engineering - protects against funds transfer fraud.
5. Business travel insurance - for regular client visits or overseas work.

Common questions, answered

Q: Do small agencies really need cyber insurance? A: Many do. UK data shows frequent cyberattacks and rising data exposure. Even a small breach can trigger legal, forensic, and notification costs. Basic controls can lower premiums and improve insurability.

Q: How much professional indemnity cover should we buy? A: Start with client contract requirements, then consider potential financial impact from your biggest project. Mid-sized agencies often choose £1m to £5m. Higher-risk work or enterprise clients may require more.

Q: Are we covered if a platform outage disrupts a campaign? A: Not usually. Third-party platform outages are commonly excluded. Business interruption from cyber may help after a covered event within your environment, but routine downtime is rarely insured.

Q: Will a prior claim stop us getting cover? A: Not necessarily. Full disclosure is essential. Strong remediation steps, updated processes, and evidence of controls can keep options open, although premiums or excesses may be higher.

Q: Is employers’ liability mandatory? A: Yes, if you employ staff in the UK. The standard limit is £10m. There are penalties for operating without it. Contractors who are genuinely self-employed may be outside scope, but check your arrangements.

Q: Can we reduce premiums without cutting protection? A: Often, yes. Improve security controls, tighten contracts, right-size equipment sums, and compare multiple quotes. Current UK market conditions are competitive, so it pays to shop around carefully.

What to do now

Take stock of your real risks, your client contracts, and the data you hold. Shortlist the covers that match those exposures, then compare limits, exclusions, and prices from several UK insurers. If rates are favourable, use the opportunity to close gaps rather than trim essentials. You stay in control throughout.

Important note

This guide is general information, not personal financial advice. Features, limits, and exclusions vary by insurer. Always read your policy documents carefully and confirm details with your insurer or broker before purchasing.