For any company to succeed, it needs to get its name out into the world. Business owners know this and that's why they won't hesitate to establish a generous advertising budget. Many businesses will kick off a marketing campaign without even considering the need for advertising liability insurance. A company takes on significant risks when it enters the realm of advertising and business owners need to be aware of them.
Effective advertising requires the implementation of unique ideas to catch an audience's attention. If another business has hit upon a certain format or style for their ads before you did, you could be subject to a lawsuit if you follow a similar campaign.
If your ad contains libel or slander against another person or entity, even if unintentional, that individual or company has grounds to pursue legal action.
3. Invasion of Privacy
An advertisement containing information about another person is also vulnerable to legal action. Sensitive information can include a person's name or likeness, or any other private matter.
Companies that recklessly begin a marketing campaign without considering the risks associated with advertising are vulnerable to serious financial loss. Accidents and unintentional infringement can occur, even to the most careful businesses. Advertising liability insurance can protect against unfortunate incidents during an important ad campaign.