When a mistake at a media agency left their reputation at stake

When a simple error in sending an advert to print resulted in a claim for negligence against our client, a media agency, they were relieved their professional indemnity insurance policy meant Hiscox were able to step in and help quickly resolve the case.

The agency’s client, a major retailer, engaged them to place an advert about a retail offer in a national newspaper. The wrong advertisement was sent to print and by the time the mistake was discovered, it was too late to stop the ad from running. The retailer wanted the agency to arrange for the correct advert to be run immediately at no further cost to them.

Fortunately, the agency was covered by our specialist business insurance for marketing and media professionals. The policy is designed to protect businesses, like the agency, when a client alleges that there’s a problem with the work that’s been done for them. This type of cover can be invaluable for those working in marketing, media, advertising and communications, where the simplest of mistakes can be the most costly. And if a covered claim looks like it might damage the business’ reputation, we offer access to specialist public relations support to help manage the crisis exclusively as part of the marketing and media professional indemnity cover.

As there was no dispute that the agency was liable for the error, we moved to resolve this case as quickly as possible. We confirmed that the claim was covered in the policy and agreed to pay the costs associated with running the correct ad in the same paper that weekend.

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