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Industry Insights

Words of wisdom from our business insurance experts.

Marketing Automation Insurance: Coverage, Costs, & Considerations

6 min read
July 2, 2024
Marketing Automation Insurance: Coverage, Costs, & Considerations

In recent years, the marketing industry has seen significant technological advancements—including the rise of marketing automation. However, the companies behind marketing automation software should be prepared to deal with risks like employee errors, cyberattacks, and injuries to visitors and employees.

Buying the right insurance policies is the key to minimizing the consequences associated with these dangers and others. In this article, we’ll explain the risks threatening marketing automation businesses and the insurance policies that can help.

What is marketing automation?

Marketing automation involves using specialized software to automate various marketing-related tasks. With the help of these programs, marketing departments don’t have to spend time manually completing tasks like making social media posts or sending emails to customers.

While marketing automation is already a successful industry, it is projected to become even bigger over the next decade or so. In 2024, the industry’s global revenue was estimated at $8.23 billion; by 2032, it could bring in $21.7 billion in revenue.

What risks do marketing automation businesses have?

As the marketing automation industry grows in prominence, the businesses creating this software should be aware of certain risks. Issues that companies in this field may find themselves dealing with include:

Visitor injuries

If your tech business has a physical workspace, there’s always a possibility that someone visiting your office could get hurt. Along with that, you’ll need to be aware of dangers like client property damage and advertising injuries.

Medical expenses for employees

Your employees are only human, so no matter how careful they are, they could get hurt while doing their jobs. If your workers get injured while on the clock, you could have to cover both short-term and long-term medical expenses.

Oversights and errors

When your marketing automation company makes a mistake, your clients won’t be happy—and they might take legal action as a result. If you find yourself in this situation, you’ll need some form of financial protection.

Data breaches

Technology businesses tend to handle a significant amount of customer data. As a result, these businesses are often targeted by hackers, increasing their risk of cyberattacks and data breaches.

Employee misconduct

If one of your employees commits an illegal act on the job, you and your clients will have to deal with the consequences. Theft is a common form of employee dishonesty, but tech workers can also cause problems by unlawfully accessing data, 

Car crashes

Any business that owns a vehicle needs to be prepared for the possibility of an accident. Without sufficient insurance coverage, your company could be in serious trouble if one of its vehicles is involved in a crash.

What insurance do they need?

Even if you take every possible precaution while running a marketing automation company, you can never truly eliminate risks like those listed above. Because of that, your business should invest in insurance policies like:

General liability insurance

If you’re in charge of any technology-related business, there’s a good chance you’ll need a general liability insurance policy as soon as possible. With one of these policies in place, you’ll be protected if a visitor gets physically injured at your workplace.

General liability insurance can help your business out in other ways, too. For example, it can protect your company from the consequences of client property damage and advertising injuries (including defamation and intellectual property claims).

Workers’ compensation insurance

A software development office might not sound like a hazardous workplace, but that doesn’t mean your employees are immune to injuries there. If your business’ workers suffer accidents while working, you could easily face financial losses and lawsuits.

Fortunately, workers’ compensation insurance can help. This form of insurance provides financial coverage that makes it easier for companies to pay for:

  • Employee medical expenses related to work injury/illness
  • Lawsuits from injured workers
  • State law compliance

Technology errors and omissions insurance

Technology errors and omissions (E&O) insurance combines a “standard” E&O policy with third-party cyber liability insurance. As a result, this form of insurance can make it easier for your marketing automation business to deal with the effects of:

  • Mistakes and oversights
  • Contract breaches
  • Intellectual property/media liability claims (in some professions)
  • Failure to deliver services as promised
  • Lawsuits from clients after data breaches

Cyber liability insurance

Technology E&O insurance can be helpful when your business is involved in a cyberattack, but this form of insurance coverage won’t be enough on its own. Along with that, it’s a good idea to invest in cyber liability insurance.

With one of these policies in place, your marketing automation company will get financial help with expenses related to:

  • Notifying affected individuals and organizations
  • Investigating cybercrimes
  • Recovering data and assets
  • Making ransom payments
  • Dealing with lost revenues as a result of this situation
  • Managing PR
  • Protecting stakeholders

Fidelity bonds

No matter how much you trust your employees, you can never be 100% sure that they won’t engage in unlawful activities—and if they do, your company could be liable for the resulting damages. With that in mind, it’s wise to protect your business by investing in fidelity bonds.

Fidelity bonds can offer liability coverage if your workers commit illegal acts such as theft, fraud, or forgery. This coverage functions differently than other insurance policies—since the full amount of your fidelity bond must be paid back to its issuer, these bonds more closely resemble lines of credit. In many cases, client contracts require businesses to have fidelity bonds in place.

Commercial auto insurance

Between property damage, medical bills, and potential lawsuits, auto accidents can be extremely expensive for any business. And while no business wants to deal with thousands of dollars in losses, this can have an especially significant impact on small companies in the marketing automation field.

Fortunately, commercial auto insurance can assist businesses on the hook for accident-related expenses (not to mention costs related to auto theft or damage from vandalism/weather). You can also adjust this type of coverage to better fit your business’ needs, so you won’t have to pay as much as some companies for this insurance policy if you only use your commercial vehicle on rare occasions.

How much does it cost?

To enjoy the benefits associated with thorough insurance coverage, you’ll need to invest in these policies first. On average, here’s how much your marketing automation company can expect to pay for the types of coverage listed in this article:

  • General liability insurance: $30/month
  • Workers’ compensation insurance: $34/month
  • Technology errors and omissions insurance: $67/month
  • Cyber liability insurance: $148/month
  • Fidelity bonds: $107/month
  • Commercial auto insurance: $198/month


With the marketing automation industry set to continue growing for the foreseeable future, businesses in this field must do whatever they can to keep up—and that includes preparing for potential dangers. If these companies aren’t careful, they could be seriously affected by lawsuits from unsatisfied clients, employee misconduct, and auto accidents (among several other risks).

The good news is that you don’t have to spend too much time worrying about these problems. By taking your business’ insurance needs seriously, you can keep these threats under control and focus on delivering the best possible marketing automation solutions to your customers.

Get in touch with a Fullsteam Advisor today and learn more about costs, coverage, and more.

Tyler Crawford
by Tyler Crawford
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