Collaboration is the glue that makes the UK’s creative and digital industries thrive. Agencies, studios, and freelancers often work together to pitch, build, and deliver work that couldn’t be achieved alone. It’s how ambitious campaigns get made and complex immersive projects come to life!

In the same breath, however, collaboration also introduces one of the most overlooked risks in the creative world: shared liability.

When something goes wrong in a joint project – like a delay, a data breach, or a copyright dispute – the lines of accountability often blur. Clients may not care whose fault it was. They just know the work failed, and someone needs to pay.

Unfortunately, that someone is often you…

Collaboration is growing – and so is the complexity

Let’s be clear. Collaboration isn’t just an effective option – it’s an essential component of service delivery, particularly where clients expect integrated solutions that bring together strategy, design, production, and technology.

A typical UK project might involve:

• A lead creative agency developing concepts
• A digital partner handling build and analytics
• A freelancer providing motion graphics
• A specialist events or experiential company running delivery

This structure works brilliantly – until it doesn’t. Although you see a collection of individual specialists working together, the client sees one delivery team. If anything goes wrong, their complaints will likely be directed to the party with the contract, which is typically the lead agency.

Even if the issue lies with a subcontractor’s code, or another partner’s missed deadline, the client’s legal and financial recourse usually starts with you.

Where collaboration risk creeps in

Collaborative work combines contractual, operational, and insurance risks that don’t always show up until it’s too late, including:

• Unclear roles and responsibilities – Without a detailed contract or statement of work, it’s easy for scope to overlap or for gaps to appear. If one partner assumes another is handling testing, compliance, or data security, no one may actually do it.

• No formal subcontractor agreement – Many agencies work with trusted partners informally, assuming friendship or reputation will cover them. But without written terms that allocate risk and require adequate insurance, the lead agency could be left holding the liability.

• Conflicting insurance coverage – If a subcontractor’s Professional Indemnity or Public Liability policy doesn’t align with yours, gaps can emerge. Some freelancers operate without Professional Indemnity cover altogether – meaning any error they make could default to your policy.

• Client contracts that overreach – When multiple partners work together under a single master contract, the lead agency might sign up to broad warranties, indemnities, or even unlimited liability. That can expose the entire chain if something fails downstream.

A real-world example

Imagine a digital agency collaborates with an external developer to build an interactive microsite for a retail client’s campaign. The site launches, but a coding flaw exposes customer data.

The retailer blames the agency that signed the main contract, demanding damages and alleging breach of data protection laws. The developer’s freelancer agreement is vague, with no indemnity clause or requirement for Professional Indemnity cover.

The result?

• The lead agency faces a costly legal claim and potential reputational harm
• The freelancer may not have the resources or insurance to reimburse losses
• The agency’s insurer could dispute cover if subcontractor management wasn’t properly documented

It only takes one weak link for collaboration to switch from a strength into liability.

How to protect your agency on joint projects

Thankfully, ‘don’t collaborate’ isn’t the solution. Most collaboration risks can be managed with sensible planning, clear documentation, and the right insurance setup. Here’s what’s important…

Get contracts in place – every time.

Always have a written agreement with your partners, however well you know them.

Define:

• Roles and deliverables
• Ownership of intellectual property
• Indemnities and liability caps
• Insurance requirements and proof of cover

This ensures you can recover costs (or defend a claim) if a partner’s work triggers a loss. Friendship won’t.

Review your client contracts carefully

Don’t automatically accept wide-ranging warranties or unlimited liability. You’re the lead agency, so take the lead on your contracts.

Push for clauses that limit exposure to your fees, or at worst, to your Professional Indemnity insurance limit.

Check insurance alignment

A good rule of thumb: if a collaborator’s error could cost your client money, they should be insured.

Confirm that each one carries valid Professional Indemnity and Public Liability insurance at levels appropriate to the project – and ask for copies of certificates.

Remember, some insurance policies will explicitly state that any contractor engaged will need to hold a certain level of insurance for your coverage to remain valid.

Maintain documentation

Don’t lose the ammo in your insurance arsenal.

Keep clear records of handovers, sign-offs, and communications between partners. These can be invaluable in defending claims or proving where fault lies.

Choose partners wisely

Reputation matters, but governance matters more.

Consider a simple vetting process for recurring collaborators. Check financial stability, professional conduct, and insurance status before bringing them into client-facing work.

What your insurance should cover

Professional Indemnity cover should protect you if a client alleges negligence or breach of contract, even when subcontractors are involved. That is, of course, provided you’ve taken reasonable steps to vet and contract them.

If you act as the lead on joint projects, your insurer may expect you to ensure all partners have comparable Professional Indemnity cover. Without that, you might find a claim only partly covered, or not at all.

Additionally, this should never be a one-size-fits-all approach. Check the other insurance covers of contractors in line with the specific deliverables concerned, such as:

• Public Liability – For physical damage or injury caused during collaborative work, product launches and shared events.
• Cyber Liability – When partners have access to shared systems or data environments. Many cyber risks are not covered under Professional Indemnity insurance, so this needs specific attention in its own right.
• Management Liability – Directors can face claims over project oversight or governance failures. Your broker can help make sure these policies complement one another, rather than leave gaps between them.

Simplify complex collaboration cover with RiskBox

Collaboration fuels creative innovation, but it also multiplies risk. Accountability can become muddied when moving parts collide and insurance doesn’t automatically extend across every partner.

This is where a specialist broker like RiskBox becomes invaluable. We provide transparent, bespoke guidance on establishing clear contracts, aligned coverage, and sensible project governance that can mitigate the risk and maintain the reward.

When a shared project succeeds, everyone wins. When it fails, you’ll want to know exactly where the liability stops – and that your insurance will stand behind you. Get in touch with us today for simplified advice about covering your unique collaborative projects.

Photo by Austin Distel on Unsplash