If you run a marketing agency, you've probably heard clients ask about your insurance coverage. Maybe you've wondered whether you really need it, or if you do, what kind makes sense for your business. Here's the thing: a Business Owner's Policy (BOP) is often the smartest starting point for marketing agencies—not because it covers everything, but because it bundles the essentials at a price that won't drain your operating budget.
A BOP combines general liability insurance, commercial property coverage, and business interruption protection into one package. Think of it as the insurance industry's version of a value meal—you get the core coverages you need at a lower price than if you bought them separately. For marketing agencies specifically, this means protection for client meetings gone wrong, damaged equipment, and lost income if your office becomes unusable.
What a BOP Actually Covers for Your Marketing Agency
Let's break down what you're actually getting when you buy a BOP. First up is general liability insurance. This covers bodily injury and property damage you cause to others. If a client slips on a wet floor during a presentation at your office and breaks their wrist, general liability handles their medical bills and potential legal fees. It also covers property damage—like if you accidentally spill coffee on a client's laptop during a pitch meeting.
General liability also includes personal and advertising injury coverage, which protects you from claims involving slander, libel, or copyright infringement. For marketing agencies, this is where things get tricky—and where you need to pay attention. The built-in advertising injury coverage on most BOPs actually excludes businesses in the marketing and advertising industry. That means you'll likely need separate media liability or professional liability coverage to protect against claims that you stole a competitor's campaign idea or violated copyright in your creative work.
The second major component is commercial property insurance. This protects your physical stuff—computers, cameras, office furniture, signage, and inventory. If your office floods, gets burglarized, or burns down, property coverage helps you replace what you lost. Covered perils typically include fire, wind, hail, theft, vandalism, and certain types of water damage. What's not covered? Earthquakes and floods usually require separate policies.
The third piece is business interruption coverage, sometimes called business income insurance. This is the part most people overlook until they need it. If your office becomes unusable due to covered property damage—say, a fire forces you to close for two months—business interruption coverage replaces the income you would have earned during that time. It can also cover extra expenses like renting temporary office space while repairs happen.
When a BOP Makes Sense for Your Marketing Agency
Not every marketing agency qualifies for a BOP, and not every agency should buy one even if they do qualify. BOPs are designed for small to medium-sized businesses with relatively low-risk operations. To qualify, you typically need fewer than 100 employees, less than $5 million in annual revenue, and operations that don't involve high-risk activities.
For marketing agencies, this usually means you're a good fit if you work primarily from an office or remotely, don't manufacture products, and don't have a retail storefront. If you're a five-person agency running social media campaigns and website redesigns from a co-working space, a BOP probably makes perfect sense. If you're a 150-person agency producing TV commercials with on-location shoots, you'll likely need a more customized commercial package policy instead.
The cost savings are real and substantial. Purchasing a BOP instead of buying general liability and property insurance separately will save you 10-25% on average. In 2025, BOPs for small businesses cost an average of $1,767 per year, or about $147 per month. For marketing agencies specifically—which tend to fall into lower-risk categories—costs often land on the lower end of that range. Compare that to buying general liability alone at around $104 per month, and you're only paying about $43 more to add property and business interruption coverage.
Beyond the cost savings, there's the simplicity factor. One policy means one renewal date, one set of documents to keep track of, and one claims process if something goes wrong. If you've ever tried to coordinate between multiple insurance policies during a crisis, you know this simplification is worth something.
What's Missing from a BOP (and Why It Matters)
Here's where you need to pay attention, because a BOP is not comprehensive coverage for a marketing agency. It's a solid foundation, but you'll almost certainly need additional policies to be properly protected.
Professional liability insurance, also called errors and omissions (E&O) insurance, is critical for marketing agencies. This covers claims that your work caused a client financial harm—like if a typo in an ad campaign costs them sales, or if you miss a deadline that derails their product launch. BOPs don't include this coverage, and many clients (especially large corporations and universities) require agencies to carry $1-2 million in E&O coverage before they'll sign a contract.
Cyber liability insurance is another gap in BOP coverage. If you handle client data, manage their social media accounts with login credentials, or store any kind of sensitive information, you need cyber coverage. Data breaches and cyberattacks are incredibly common, and the costs of notification, credit monitoring, legal fees, and regulatory fines can be devastating. Most BOPs don't include cyber liability despite how critical it's become.
Workers' compensation is also excluded from BOPs. If you have employees, most states require you to carry workers' comp to cover medical bills and lost wages if someone gets injured on the job. Commercial auto insurance isn't included either—so if you or your employees drive for business purposes, you'll need a separate policy for that.
The good news is that many insurers offer discounts when you bundle a BOP with these additional coverages. You can typically save 5-15% on your total premium by adding workers' comp, professional liability, or commercial auto to your BOP. On a $1,767 annual BOP policy, bundling could save you $88-265 per year.
How to Get Started with a BOP for Your Agency
Getting a BOP is relatively straightforward. Start by gathering basic information about your business: annual revenue, number of employees, square footage of your office space, and the value of your equipment and property. You'll also want to review any client contracts to see if they specify minimum insurance requirements—this will help you determine the right coverage limits.
Most marketing agencies should aim for at least $1 million in general liability coverage, which is typically the minimum clients require. Property coverage should reflect the actual replacement cost of your equipment, furniture, and other business property. Don't just insure what you paid for it years ago—think about what it would cost to replace everything today.
Work with an insurance agent or broker who understands marketing agencies specifically. They'll help you identify which additional coverages make sense for your situation and can often get you quotes from multiple insurers to compare. Make sure to ask about discounts for bundling, safety measures (like security systems or sprinklers), or claims-free history.
Review your coverage annually. As your agency grows, your insurance needs will change. Adding employees, increasing revenue, or moving to a larger office all affect your risk profile and coverage requirements. What makes sense for a three-person startup won't be adequate for a 20-person agency working with major corporate clients.
A Business Owner's Policy gives marketing agencies solid foundational coverage at an affordable price. It's not everything you need, but it's a smart starting point that protects you from common risks while keeping your costs manageable. Pair it with professional liability and cyber coverage, and you'll have protection that lets you focus on growing your business instead of worrying about what could go wrong.
