What is covered by Professional Liability Insurance for Digital Media Professionals?
Digital Media Professional Liability Insurance covers your legal expenses in the event you’re sued by a client or third party who suffered financial loss as a result of your service or advice, subject to the terms and conditions of the policy. The allegations may or may not be true; your coverage will still cover your defense costs as well as any settlement or judgement awards up to your policy limit.
EasyCover offers three levels of protection:
- $1 million
- $2 million
- $5 million
The limit is the maximum amount that will be paid out over the 12-month policy period for all claims. For example, if you choose a $1 million policy limit and you have two claims within one policy period, your insurance will only cover up to $1 million for the policy year, not per claim.
The appropriate level of protection depends on your clients, the value of the projects you work on, and the potential costs of litigation
You’ll also need to pay a deductible for each claim. Let’s say your deductible is $500. If you have two claims within one policy period, you’d pay a total of $1,000 in deductibles. Your Professional Liability Insurance would cover the rest (up to your policy limit).
Insurance won’t cover foreseeable acts, deliberate acts of dishonesty, or fraud. You’re also required to inform your insurer as soon as you’re aware of an incident that might lead to a potential claim.
Your digital media Professional Liability Insurance also won’t cover any third-party bodily injuries or property damage – that type of claim is covered by a Commercial General Liability Insurance policy.