Real examples of commercial protection for production agencies
A customer of ours – a marketing and media production company, which produces print, TV and digital adverts for clients – recently found themselves in a difficult situation, when they faced allegations of breaching advertising regulations.
A breach of advertising regulations saw this production company facing a potential claim
The project they were working on was a TV advert for an alcohol manufacturer and distributer. Alcohol advertising in the UK is subject to controls, set by Ofcom, ASA and the Portman Group. Rules state that alcoholic drink adverts must not feature, imply, condone or encourage irresponsible or immoderate drinking. When reviewing the advert created by the production company, the client raised concerns that if it were to be released, it may not adhere to the regulations in place.
As the production company had taken out specialist media marketing insurance, we were able to step in to help them handle the allegations and prevent a formal claim being placed for breach of contract. We began by assessing the concerns raised and concluded that the advert was at risk of breaching advertising regulations, as suggested. Moving forward, their business insurance policy was able to cover the cost of reshooting the entire advert, to ensure that it observed official guidelines.
Hiscox supported the production company through their communications with the client, and fortunately, they were extremely happy with the final edit of the advert. The complaint was dropped and not claim was filed.