Copywriters are diverse professional writers serving big corporations, small businesses, and agencies as freelancers or contractors. The Government of Canada website defines their role as writers who study and determine a product or service’s selling features and write the text for advertisements and commercials. (1) But their role can often extend to other services, such as writing email campaigns, internal communications, reports, ebooks, social media posts, and giving strategic marketing and branding advice.
Many copywriters underestimate their need for insurance coverage, as a lawsuit could put a significant financial burden on their independent business.
With the proper insurance coverage, professionals who own their own business don’t have to shoulder the risks alone. Investing in a Professional Liability insurance policy tailored to the copywriter’s unique needs is one of the best ways these professionals can protect themselves and their hard-earned business.
Here are the top 4 reasons copywriters need Professional Liability Insurance for their business.
What Exactly is Professional Liability Insurance?
Copywriters Professional Liability insurance is also known as Errors and Omissions, or E&O. It is a type of liability insurance that protects copywriters if they get involved in a lawsuit by a client or third party as a result of their negligence and errors. Even if the copywriter isn’t at fault, they will still lose money and time defending themselves in court should a client decide to sue.
This is where PL comes in. This insurance can cover income losses while the professional service provider spent time in court. It also covers awards, settlements, and judgments to the client when warranted. Copywriting professionals will have peace of mind knowing that they’ll be covered in the worst-case scenario if they run into unexpected mishaps or a problem client.
Here are some of the most common reasons copywriters will need PL insurance.
1) Equipment Breakdown
Copywriters are expected to know the facilities and equipment they use for their business. So, suppose there is an electric breakdown caused by a professional mistake, or the freelancer’s computer breaks down due to a problem they should have prevented or fixed. In that case, the copywriter will need PL insurance protection. Professional Liability covers explicitly contractual damage, that is, damage caused by a professional mistake or oversight.
2) Content Mistakes
Copywriters typically specialize in fields like healthcare, technology, law, and finance. They often are tasked with writing highly technical material, such as instruction manuals, product descriptions, and how-to guides. This potentially exposes them to third-party liability.
For example, the copywriter writes medical articles for a client, and because of a textual mistake they had written, the wrong medication is used, and people get ill. Even if the client checks the work before publication, they might partially blame the copywriter for the damage.
3) Textual Errors
While spelling and grammar errors might seem relatively minor, they can potentially undermine a brand’s reputation – especially that of a big-name brand.
For example, if a grammatical mistake makes it onto a significant advertisement, it could invite public ridicule and hurt the brand. Companies hire writers to help them attract the right kind of attention from their audiences, and the smallest typo can come back to haunt a copywriter if the client attributes it to a poor outcome or lost revenue.
4) Unintentional Breach of Contract
Breach of contract can take many forms. It could be something as simple as failing to deliver a project on time or not meeting the client’s expectations.
For example, lengthy or multiple revisions on a project might result in project delays, which the client might blame on the copywriter. Any breach of contract may entitle the client to make a claim against the writer.
How South Western Group Can Help
As sole proprietors or freelancing professionals, copywriters take on a great deal of risk. At South Western, we understand this professional niche’s unique needs and offer tailored PL insurance to serve your copywriting clients better.
SWG PL – Miscellaneous Professional Liability insurance offers a packaged E&O and CGL policy that covers a wide range of classes of business. Tailored E&O coverage protects small to large firms from a broad range of miscellaneous risks. SWG provides a Miscellaneous PL policy at competitive rates, bringing extensive knowledge and underwriting experience in professional liability.
When a service provider has PL insurance with SWG, they have a team of legal experts behind them. PL insurance also helps copywriters communicate with their clients to avoid problems escalating.
Visit our product page to download the application and submission instructions.
Content is current as of the date of broadcast and is subject to change without notice.