Insurance you need as an agency owner in the UK & U.S

This post was written by my business partner Antonio

When we were setting up our agency, NOVOS, we were knee-deep in business plans and financial goals. The exciting part of setting up your agency is thinking about the future. However, one not-so-exciting aspect that’s equally as important but often overlooked is insurance. 

Now, I know you’re probably groaning at this and may have even chosen to skim-read this article because the word “I” makes you cringe with boredom. However, we’ve scaled an agency from nothing to a multi-million-pound exit, and we know the insurance you need as an agency to cover yourselves in the event of an unexpected happening.

For a UK-based agency:

Employers Liability Insurance

Firstly, if you plan to employ anyone and even if it’s temporary, you MUST have this insurance. Not only for a claim, but it’s also a legal requirement and can result in you being fined heavily by HMRC. 

Employers Liability is to protect your employees in the event they get sick or injured as a result of their workplace. No matter what kind of business you are or what you do, workplace injuries can happen as well as occupational diseases, so you need to have this insurance in place ASAP.

Professional Indemnity Insurance

So this one’s not a legal requirement, but we recommend you have it in place as an agency. This one essentially protects your agency against any claims made by clients if they lose money because they followed any recommendations you provided or due to negligent services you offered. In the service business, things can go wrong and the wrong advice can happen, so it’s good to have this in place whether or not this happens because a client might also try it on one day if they see a dip in performance, even if it’s unrelated to you. I mention this, because we’ve had this happen to us before.

If you don’t have this insurance in place, you risk having to cover all costs, legal fees, expenses, compensation etc from your own pocket.

Public Liability Insurance

This one, and Professional Indemnity, might seem like they overlap somewhat. But both are essential to have in place in our opinion.

This one covers you for any claims made by clients or members of the public against damage or injuries, so repair costs, medical fees, personal compensation & legal costs. For you as an agency owner, this could look like a client who damages their laptop whilst onsite with you, or who injures themselves on your stairs and so on. 

It might not seem crucial, but we think it’s one of those in-expensive essentials that will give you peace of mind at night.

Contents & Business Interruption Insurance

You need to make sure all your business equipment is covered with a solid contents insurance. This includes either office-based policies (covering any equipment left at an office location) or remote-based policies (covering business equipment that is not based at a single office). When the Covid pandemic first hit, we found it near-impossible to find an insurance policy that covered our teams’ devices at their homes and we were told to “rely on their own personal contents insurances” which didn’t fill me with much confidence. 

However, we have since been able to get comprehensive contents insurance that covers any business device that gets stolen or damaged anywhere in the world. We’ve had laptops burned in fires & employees’ houses burgled, so I’d say it’s essential you have this in place especially if you’re going to work from expensive equipment.

Further to this is Business Interruption insurance, where if anything were to happen in your business day that would temporarily stop you from being able to continue running the business, then you can have this cover. This could include any sudden closures of your place of work, food poisoning sickness, and so on. Basically something that could stop you in your tracks unexpectedly.

Cyber Insurance

In the event of a cyber attack, or some kind of computer security issue, you should have cyber insurance in place. I’ve seen far too many agency owners click the wrong link or send money to the wrong place, without having insurance in place.

Having this means that should you become a victim of a cyber attack, you can claim for any losses back which makes dealing with the issue much less panicky.

For a U.S. based agency:

General Liability Insurance

Why it’s critical: General liability insurance is often the first policy an agency should acquire, and for good reason. This policy covers a broad range of risks and protects against claims of bodily injury, property damage, and personal injury that arise from your business operations.

Imagine this scenario: A client visits your office and trips on a loose cable, injuring themselves. Or, perhaps, your team accidentally damages a client's property during the execution of a project. Without general liability insurance, you could be on the hook for medical bills, legal fees, and potential settlements—expenses that could easily bankrupt your business.

This coverage is not just a safety net—it’s often a requirement from clients, especially larger ones. They want to know you're covered in case something goes wrong on their watch.

Professional Liability Insurance (Errors & Omissions)

Why it’s critical: In an agency, your value is built on your expertise. Whether you're crafting a brand strategy, designing a website, or managing a marketing campaign, your clients rely on your knowledge to produce the results they expect. However, even the best of us can make mistakes. Professional liability insurance (also known as errors and omissions insurance) protects you from lawsuits claiming negligence, misrepresentation, or errors in the services you've provided.

Let’s say you deliver a marketing campaign for a client, but it underperforms. They may sue you for damages, arguing that your advice or execution led to their losses. Without E&O insurance, you’d be left to defend yourself—potentially in a costly, drawn-out legal battle.

I’ve seen businesses lose everything over a single claim that could have been avoided with the right coverage.

Workers' Compensation Insurance

Why it’s critical: If your agency has employees (or even independent contractors in some cases), workers' compensation insurance is a must. It covers medical expenses and lost wages if an employee gets injured while working. It also protects your agency from potential lawsuits related to workplace injuries.

Even if you're a small operation or primarily remote, this coverage is still important. It may look different depending on your state, but it’s crucial to be compliant and protect both your people and your bottom line.

Cyber Liability Insurance

Why it’s critical: In today's digital world, a data breach or cyberattack is not a matter of "if" but "when." Agencies store sensitive client data, whether it's personal information, financial records, or creative assets. A cyberattack could leave you vulnerable to data theft, ransomware, or costly downtime.

Cyber liability insurance helps cover the costs associated with a data breach or cyber incident, including legal fees, notification costs, and customer compensation. It also helps protect your agency’s reputation, which can take years to rebuild if clients feel their information is compromised.

In my experience, the rise of cyber threats has made this coverage non-negotiable. Clients want to know you're prepared to handle their data securely, and an attack could have a lasting effect on your agency's credibility if you’re not adequately protected.

Commercial Property Insurance

Why it’s critical: Commercial property insurance is another essential if you own or lease office space. It protects your physical assets, including your office building, equipment, furniture, and any inventory or materials used in your agency’s operations.

Even if your agency is fully remote, you might want to consider coverage for office equipment, laptops, and other assets your team uses, especially if employees work from home.

Commercial Auto Insurance

Why it’s critical: Commercial auto insurance is essential if your agency owns or leases vehicles for business purposes. Personal auto policies typically don't cover vehicles used for business, and if your team members drive for work-related tasks (like meetings, deliveries, or errands), you could be personally liable if an accident occurs.

Even if you don't have a fleet of vehicles, remember that if employees drive their personal cars for business purposes (e.g., driving to client meetings), you might still need to consider coverage for them.

Business Interruption Insurance

Why it’s critical: Business interruption insurance covers the loss of income if your agency’s operations are temporarily halted due to unforeseen circumstances, such as a natural disaster, fire, or other disruptive events. This can help cover ongoing expenses like payroll and rent while your business gets back on its feet.

Employment Practices Liability Insurance (EPLI)

Why it’s critical: If you're an employer, you face the risk of claims related to employee treatment, such as wrongful termination, harassment, or discrimination. Even a frivolous lawsuit can drain your resources and tarnish your agency’s reputation.

Employment Practices Liability Insurance (EPLI) protects you from these claims, covering legal fees, settlements, and judgments. As an agency with employees, I’ve seen how complex employment issues can become, and having this coverage provided peace of mind.

When you run an agency, you’re juggling many moving parts. While you’re focused on serving your clients, growing your team, and managing operations, it’s easy to overlook the insurance that can keep your business safe, and we’ve definitely done this ourselves.

But believe me, when something goes wrong—and it inevitably will—having the right insurance policies in place will allow you to recover faster and keep your agency afloat. Whether you’re just starting out or scaling to new heights, protect your business, team, and clients by prioritising insurance. It’s one of the smartest moves I made as an agency founder.