Social Media Marketing Business Insurance

Best Insurance for a Social Media Marketing Business

General liability insurance is — generally speaking — one of the most important insurance policies for social media marketing businesses. 

Some of the risks general liability insurance covers are:

• Bodily injury
• Property damage
• Medical payments
• Legal defense and judgment
• Personal and advertising injury

Even so, your social media marketing business will likely benefit from purchasing additional coverage. 

This is because a general liability policy will not be able to protect it from all relevant risks, such as those that relate to: 

• Copyright or trademark infringements: Covered via an intellectual property insurance policy. 
• Employee injuries or wrongful termination claims: Covered via a workers’ compensation insurance policy. 
• Damaged or stolen business equipment: Covered via a commercial property insurance policy. 
• Lost income as a result of temporarily closing down: Covered via a business interruption insurance policy. 

You will also need to find the right business insurer for your company. As of 2024, there are two different types available for small business owners: 

• Online insurers — Use AI instead of an insurance agent to offer personalized coverage. Popular examples include Tivly and Next Insurance.
• Brick-and-mortar insurers — Have been operating for several decades — if not a couple of centuries — and have a great track record of financial success. Popular examples include Nationwide and CNA. 

Cost of General Liability Insurance

On average, social media marketing businesses in America spend between $350 – $900 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a social media marketing business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

• Location
• Deductible
• Number of employees
• Per-occurrence limit
• General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Find the Best Rate

Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Social Media Marketing Business

Example 1: During a meeting in a client’s office, you accidentally spill coffee on his expensive laptop. General liability insurance would pay to replace the client’s damaged property.

Example 2: Another social media marketing company files a libel lawsuit against your business. General liability insurance would cover your legal defense costs.

Example 3: While visiting your place of business to discuss his contract, a client slips on wet flooring in your restroom, breaks a wrist, and decides to sue your business. General liability insurance would pay for your legal fees.

Other Types of Coverage Social Media Marketing Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance

While you work hard to market your clients, there’s always a chance someone might decide you made a mistake or failed to perform your professional duties. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and real estate needed to run your social media marketing business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your social media marketing business:

• Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
• Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
• Stay up to date with business licensing.
• Maintain your corporate veil.