In recent years, many UK creative and digital agencies have shifted from being simply service providers to becoming custodians of client data, digital assets, creative intellectual property (IP) and platforms. That change alters the agency’s insurance risk profile – particularly when it comes to IP and data risks.
If your agency is now holding data, owning IP or delivering services through platforms, you’re no longer just an ‘agency’ – you’re a technology-enabler too, and therefore insurers tend to see you differently. Below, we explain why that matters.
Not all agencies are created equal. They have always varied, and perhaps now the differences between them can be wider than ever.
Consider these shifts:
If any of the above ring true for you, you’re taking on new exposures like:
Here are some of the key implications for your insurance programme.
If you hold or process personal data on behalf of clients (or hold valuable creative assets), the risk of breach is higher. And defence costs, regulatory fines and notification costs are only expected to rise.
Not only will this impact future premiums and cover availability, but it’ll also likely have a knock-on effect on contractual requirements from the agency’s end clients – who may insist on more costly coverage limits.
The ‘standard’ PI wording may assume you’re a service provider delivering a defined scope. But if you supply a platform or hold data, your exposure may be more like a technology provider.
Insurers need to understand exactly what your agency provides, otherwise you could find your agency totally unprotected for key exposures.
If your agency holds IP rights (for example, you build and own a piece of software, or you design creative which you retain) you could face infringement claims. You may also face claims because your IP fails.
There are a couple of aspects to look out for, though. Some policies will restrict the IP cover provided, from sub-limiting to completely excluding certain types of IP. Additionally, if you’re creating your own IP, you may need to consider more specialist solutions to allow you to tackle others infringing your rights.
If the platform you manage suffers outage, or your data hosting fails, your clients may demand compensation. This can be the case whether you physically host their services or just manage the contracts to host them through third-party providers.
For that reason, you need to be certain your Professional Indemnity insurance is sufficient to cover these exposures when delivering for clients. What’s more, when considering your own services, you need to be sure you have sufficient Cyber Business Interruption protection – ideally including dependent business interruption.
Clients are increasingly adapting their contracts of engagement. For agencies delivering platforms or hosting services, clients are likely to ask you to accept digital availability SLAs, hold data securely, and give indemnities for breach or downtime.
All of these feed into your agency’s contractual exposure.
There are a few steps you can take to ensure your agency is protected.
Review and map all the data you hold (client data, end-user data and creative IP). Then clarify who owns what, who is responsible for security, and what you’re liable for.
Are you accepting ongoing obligations (like uptime, support, security and data availability) as if you were a tech provider or a traditional agency?
Does your policy cover everything you do beyond the traditional agency deliverables, including software, hosting and data-driven services? Are there any sub-limits or exclusions for ‘technology services’?
Consider Cyber & Data insurance. Processing or holding data (or using cloud/hosting), whether for yourself or your clients, is a significant exposure. Make sure the policy you choose covers regulatory enforcement, notification costs and potential third-party claims.
Be clear on who owns the IP you create and understand the risks if you license it. Check the legal position with your freelancers or contractors, too – do you inherit the IP rights? Are you exposed to third-party claims?
Do all you can to manage both the data and IP risks to your agency. Put in place robust data-security procedures, effective contractor and freelancer IP assignment, clarity of service levels, backup, and continuity of platform services.
Engage a broker who understands how service delivery has evolved so that the insurance structure aligns with your business model, not just the model of a ‘traditional agency’.
The modern UK agency isn’t just a ‘we make marketing campaigns’ kind of business. Increasingly, it’s more akin to a ‘we build and manage digital assets, services and data platforms’ business.
That evolution is exciting, but it also means the risk profile changes – and so do the insurance needs. Agencies who blindly continue with an old model of cover risk underinsurance or gaps.
The first step is to recognise how your business has changed, and the second is to ensure your insurance reflects it. We can help with both. Get in touch and we’ll take a deep dive into your operations before implementing a cost-effective insurance programme that effectively covers your key risks.
Photo by Annie Spratt on Unsplash
Agencies - December 3, 2025
AI - November 12, 2025
Media - November 5, 2025
