Social Media Marketing Business Insurance
Getting insurance for your social media marketing business is essential.
This is because you will need to protect yourself against things like indemnity claims, trademark and copyright infringements, and contract violations.
Business insurance can also be useful when it comes to protecting your commercial equipment (e.g., work computers, etc.) from potential damage or theft.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
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.
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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.
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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.
Social Media Marketing Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
You don’t “need” to get business insurance before you start operating from a legal point of view, but it is still highly recommended.
This is because you will want to avoid a situation in which liability arises and you are not yet insured, as this can cost you tens of thousands of dollars.
Not necessarily. Certain exceptions may be written directly into your social media marketing business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.