19960902
PR LIABILITY INSURANCE OFFERED
September 2, 1996
American International Group [3437Z], New York, announced last month that it is offering media liability insurance to public relations firms. The innovative product, also being marketed to ad agencies and publishing companies, addresses liability for "defamation, invasion of privacy, intellectual property torts and errors and omissions."
While PR agencies technically are liable for these types of matters, few if any PR firms have been sued successfully. Most firms are protected from liability through "hold harmless" clauses that free them from liability relating to work done for clients. Nonetheless, liability is a concern of firm executives. A low-cost insurance product (AIG's premiums start at $3,000) explicitly designed for smaller companies, such as most PR firms, may prove attractive. (American International, 212/770-3144)