Insurance for Experiential Marketing & Production Businesses

Have you ever bought something because you related to the way the product spoke to you? All of us have found ourselves interested in buying something just because the marketing was so spot-on that it felt as if the products were meant especially for us. 

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In recent years, the marketing industry has upped its game by providing a real-life experience of the product before you purchase it. That’s experiential marketing – a marketing tactic developed to interest customers in experiencing the product before actually buying it.

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In that sense, customers feel more of a connection to the brands and companies offering products than they would if the same product was marketed to them the old-fashioned way. As a somewhat novel marketing tactic, experiential marketing is great for any small, medium, or large sized business.

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According to a survey issued by EventTrack, in 2021, 40% of responders said they would rather be loyal to a brand that had involved them in some sort of interaction and experiencing event before committing to a purchase. Plus, 91% of people who participated in the survey reported they would purchase the marketed product or service after participating in a brand experience.

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Textbook Definition: Experiential marketing, also known as engagement marketing, is a marketing tactic that speaks to the customers directly and motivates them to become involved in a brand experience.

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In other words, experiential marketing creates customer experiences that are not easily forgotten, thus forging significant emotional ties between the brand and the customer. As opposed to typical, old-school marketing that sees customers as mere receivers of information, experiential marketing motivates customers to engage in different experiences before they commit to a purchase.

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Like anything that can happen to any other business, your experiential marketing business isn’t an exception. From your assets to your employees, there can always be some level of risk that may deter you from properly and effectively continuing the business. 

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Here are several of the most common losses and risks that any experiential marketing agency can face:

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• It often happens that you forget some deadlines, make work errors, or fail to deliver results. This can make you lose clients or, worse – bring some legal proceedings and fees.
• Even in an experiential marketing business, an employee can suffer a physical incident while in the office or at a production. If you don’t settle this quickly and effectively, it may bring problems in the future.
• It’s not uncommon for natural causes of any kind, like water flooding or fire, to damage the property. Damage can also happen because of other things, like faulty electrical wiring.
• If you produce events outdoors, the weather can delay or cause cancellation. A weather policy can protect the budget.
• Considering that you're entering a competitive market, it’s not uncommon that the competition would like to diminish your brand. One of the most common risks businesses in this industry face is slander and libel.
• With today’s technological advancements, even the marketing industry has taken a dip into the possibilities offered by the Internet. However, even though there are great benefits, some cons follow closely behind, like cyber attacks, which in the area of experiential marketing can bring the downfall of a company.

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Loss scenarios depend on the type of operations your agency conducts, so it's best to speak with one of our insurance advisors. Get in touch today!

Safeguarding your experiential marketing business by adopting the right insurance policy is of great importance today. The following types of insurance policies can help you, as a business owner, protect your company from different types of danger:

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• Errors and Omissions Insurance - This insurance protects your business for things like claims of mistakes, negligence, inadequate work, inaccuracies, misrepresentation, or similar allegations. For example, say you sign a contract to produce an event and the design is poor causing people to defame your client's brand.
• Commercial General Liability Insurance - Protection for third-party injury or property damage. For example, a speaker falls on a spectator and they sue for medical bills.
• Commercial Property Insurance – Any physical asset that is in possession of your business is safeguarded from damage with this type of policy. For example, you rent audio and video equipment for an event and it is stolen.
• Workers' Compensation Insurance – Protection for worker-related injuries, including subcontractors, volunteers, and part-time, and full-time workers.
• Cyber Liability Insurance – Insuring your company with this policy shields your business from breaches in data and other security issues.
• Employment Practices Liability - This protects your business from lawsuits related to employees such as sexual harassment, wrongful termination, discrimination, wage & hour, and more. For example, you decide to fire a worker due to their poor work performance and the employee sues for lost wages.

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At the end of the day, your insurance is protecting your people, your property, and third parties. Our advisors work directly with your management team to create a custom insurance policy. Get in touch today.

The value of an insurance policy will depend on the type you choose and the features it has, like the number of people or properties covered with it, the premium, rate, etc. On average, you can expect these amounts for the insurance types provided above:

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• The errors and omissions insurance usually goes for around $500 to $10,000 per year and is rated off total annual sales, limits, and operations.
• The average cost for general liability insurance is around $2,500 to $25,000 per year depending on the total payroll, production costs, and number of events.
• When insuring your property, you can expect to $1,000 per $100,000 of owned and rented equipment.
• If you want to make sure that all employees are safeguarded from any potential risks, then you will have to pay around 2% of your total annual payment to workers.
• Cyber liability insurance goes anywhere between $500 to $5,000 annually and is rated off total annual sales and limits.

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If you are looking for indications on total annual premiums for your business, get in touch with an advisor. We can assess your business and provide accurate figures for each line of coverage.

Today, there are countless insurance companies that can help you with anything, no matter the profession or the industry. When talking about game developer insurance, getting the insurance you need can be equal parts difficult and easy.

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You can find many companies that will offer at least some policy for video game developers, with a variety of security protocols in it. The hard part is that insurance for video game development is a relatively new product, so you might have a hard time finding the right one with sufficient coverage. 

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Game development is not risky as other jobs might appear to be, but it still holds risks of online attacks, hacks, and losing data.

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You deserve a partner that understands your risk.

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The insurance for game developers is not without its risk. Before you move on to grab one insurance package, you must get familiar with the risks. The best way to understand the risks is to hire a broker who is specialized in your industry. The broker is well informed of the risks and can negotiate the deal for you, for the best price. Most importantly, they will work with underwriters to ensure the insurer understands your business and the risks involved.

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The process to get insurance is usually an easy and straightforward process. At the end of the day, our job as brokers and advisors is to educate you on what everything means and collect the information to educate underwriting. Some traditional businesses can move through the process faster as a lot of underwriting is supported by artificial intelligence, but most policies today will be reviewed by an actual person.

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The standard process to produce quotes for your startup is as follows:

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1. Introduction with your advisor: this can be a quick phone call, email, video conference or in person meeting. You'll decide if you enjoy the advisor and trust their advice. This is also where you'll be able to ask questions, provide information about your operation, and go over the process to get insured.
2. Data Collection and Underwriting: this is where you'll get into the fine details about underwriting questions and information that will be necessary to engage the insurance market. You'll be able to chose from filling out PDF's, going through our smart-form technology, or provide it all over the phone, email, or in person.
3. Quote Review: once your advisor has the information needed for underwriting, they will work with the insurance market to produce quotes. This can take a day or up to a week, depending on the time and operation.
4. Finalize Coverage: here you'll decide the coverage to move forward with. Final steps include signed documents, payment, and selecting a specific start date.

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Advisor Tip: take 5 minutes out of your day and speak with one of our advisors. We'll learn about your operations, provide estimates for annual premiums, and go over the process to get your business covered.