Product
Professional Liability
Occupation
Advertising Agency
Industry Segment
Multimedia Marketing and Telecommunications
Claim Description
An advertising agency was hired to create and produce television commercials for a local used car dealer. The ads included a puppet handmade by a family member of the car dealer. The agency also allowed the car dealer to script the onscreen appearances of the puppet.
After the ads were shared via social media, a puppet manufacturer sent a cease-and-desist letter to the car dealer alleging copyright infringement related to the puppet’s design and the slogan it used in the ads.
The car dealer honored the cease and desist, but fired the advertising agency and sued for the cost of creating a new ad campaign with another agency.
Outcome
The advertising agency’s insurer covered $30,000 in defense costs, and the matter was settled confidentially.
The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizInsure for Agents.