Overview of the Media and Advertising industry

This is a huge category that includes some of the largest and fastest growing companies in the world. They all focus on communication. How are we disseminating information? How are we spreading our message, whether it’s news, product advertisement or simply our weekend plans? Media and advertising companies are finding solutions for improving communication and connectedness in new and constantly changing ways.

Publishers include Disney, Comcast, News Corp, Advance Publications and iHeart Media, to name a few. Advertising agencies also host a diverse group including WPP, Omnicom, Publicis, Interpublic and Dentsu. Once we look to the world of digital media, however, it becomes much more crowded at the top.

Google and Facebook fit into each of these categories in one way or another. They represent both the future of media and the biggest challenge to the industry’s new entrants. Whether it’s digital advertising, adtech or social media, these companies have figured out how to maximize the value of an advertising dollar. As a result, the advertising industry is shaping itself around them.

Some of the biggest risks Media and Advertising companies face

Contingent Business Interruption

What happens if the supplier’s data centers go down?  Contingent business interruption results from an interruption of business at the premises of a customer or supplier.  In 2016, data center network outages and contractual obligations caused numerous disputes.

Regulatory Compliance

New regulations and contractual risks are increasing for these organizations wit the increase in sharing economy regulations. 57% of companies say that regulatory risk is of great concern,yet only 23% of those companies believe they are adequately protected against regulatory risk.

Intellectual Property

Intellectual property (IP) theft doesn’t often result in a loss for media and advertising companies. Only 6% of survey respondents said they experienced an IP loss in the past few years. But the severity of the loss is potentially enormous when it does happen.

Why is Insurance for Media and Advertising Companies Important?

The larger scale companies operate with a higher degree of risk but everyone in the media and advertising spaces takes on risk. The most obvious would be what the insurance industry appropriately calls “media liability.” This is a type of professional liability coverage that protects companies from suits claiming their content defamed or infringed on the intellectual property of a third party.

Advertising liability coverage works in a similar way but protects the company from liability related to their own advertising. Together, media and advertising liability coverages provide a more comprehensive safeguard against liability that arises from media operations.

Unique exposures exist for each type of company under the “media and advertising” umbrella. A news company would want to have a policy that provides protection when the government tries to compel them to reveal a confidential source or when they have to defend their first amendment rights. The insurance industry has reacted to that and created bespoke policies.

The right tech and media professional liability would protect a company from, for instance, liability from a bug in their system causing an erroneous order being placed on their client’s behalf for ad space.

On the technical front, service outages can come from all directions. Anything from routine system maintenance to targeted DDoS or cyber extortion attacks can trigger a business interruption. If an advertiser can’t do their job or a social media network has to shut down, they’ll have to pay the price in the form of lost income or, worse, lawsuits.

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Types of Media and Advertising Companies that need insurance

Digital advertisers / Adtech platforms

The new wave of advertisers. These companies specialize in search engine marketing, online advertising, web design and development and ecommerce consulting. More “adtech” heavy companies focus on backend systems that help direct advertisements to a specific audience. Programmatic advertising has emerged as one of the most efficient methods of turning dollars into clicks.

Social Media

Whether it’s Facebook, Instagram, Twitter, Snapchat or any successor to these platforms, this group of companies connects people. They will also allow for targeted advertising driven by information gathered from target group profiles.


These are the content generators. They also provide the platform where the ads will be shown to be consumed by general public. Websites, magazines, newspapers, tv and music publishers are all included here.


These companies are generally what you think of when you think “advertiser”. They will often conceive and oversee large campaigns that blend both traditional media (printed designs like posters, flyers, stickers, banners, etc.) with digital advertisements. This class focuses both on the creative side and marketing strategies.

Media and Advertising companies we work with

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