Incorrect Foiling Ruins Vehicle - A Real Damage Event
The responsibility for a prestigious project is a good chance for self-employed people to demonstrate their know-how, to satisfy customers and, in the best case, to acquire follow-up orders right away. Unfortunately, there is also the chance that the dream project ends in complete disaster - especially when many different parties are involved. This is exactly what happened to a media agency insured through exali in this damage event.
Staging A New Car
At first, this assignment sounds like a dream come true for all those who like to work creatively: A well-known car manufacturer commissioned a media agency to artistically stage a high-class car for a vernissage - it should be sprayed elaborately. In order to be able to apply paint to the car later, it was therefore necessary to foil it in advance - the manufacturer took this into his own hands.
In the following article, an advertising agency insured by exali also learned that the presentation of services and products at large events can have its pitfalls: Ad Agency Orders Wrong Advertising Material – a Real Damage Event.
The media agency in charge subcontracted an American artist to spray the car. The artist was given the task of carefully masking off the areas that had been left out during the foiling process, such as the windows, sensors and headlights, before spraying.
A subcontractor is an independent entrepreneur. He/she receives orders from the so-called main company and provides a service within the framework of a service or work contract that the main company owes to the client.
Car Ruined - More Than 8.000 Euros In Damage
After the luxury car had been successfully presented at the vernissage, the shock was great when those involved realised that the spray paint had leaked into the interior of the car through the folds of the doors, the boot lid and the bonnet, and that the parts masked off by the artist had also been affected by some of the paint mist. An expert opinion finally put the damage to the vehicle at over 8.000 euros. The manufacturer first demanded this sum back from the agency as compensation for damages, since it was responsible for spraying the vehicle.
You Contribute to the Success of Your Customers - We Protect You In The Process
Whether you are an agency owner, a copywriter or a graphic designer - as a creative you use all your skills to support your clients. The responsibility is as extensive as the damage if you make a mistake. In the event of professional negligence such as warnings, copyright infringements or damage caused by delay, you can rely on Professional Indemnity Insurance through exali. This means that in the case of a damage event, you will not be stuck with the costs.
After this bad news, the media agency immediately contacted exali's customer service team, which gathered all available information and documents and then forwarded the case to the insurer's claims specialists. They examined the insurance payment in detail. However, the liability issue turned out to be particularly complicated in this case because three parties were involved: The manufacturer of the car, the media agency it had commissioned, and its subcontractor (the US artist). For this reason, it was unavoidable to first review the individual assignments as well as the associated obligations and to classify them in terms of liability law before the insurer could make an offer to cover the costs.
In the end, the responsibilities were as follows: The manufacturer was responsible for the proper foiling of the vehicle, the agency for the advertising concept and its implementation in cooperation with the artist, and the artist himself for the masking and spraying of the vehicle. After their examination, the insurer's claims specialists came to the conclusion that the insured agency was to blame for 50 per cent of the established damage. Ultimately, the manufacturer itself was responsible for the foiling, which did not cover the edges properly, and the agency, as the main client, was responsible for the poor masking of the artist before the spraying. Both parties therefore agreed to a general cost-sharing arrangement. The media agency's liability was covered by the Professional Indemnity Insurance.
Good insurance cover is up-to-date! In the article you can read How exali's Professional Indemnity Adapts to Your Business.
The media agency also benefited from the fact that its Professional Indemnity Insurance also covers the liability of subcontractors worldwide. The insurance conditions of exali literally state: "Insurance cover is also provided for third-party liability claims against the insured from the commissioning of external companies/subcontractors.“ For this reason, the agency's Professional Indemnity Insurance stepped in, even though the artist from the USA had caused 50 per cent of the damage.
Vivien Gebhardt is an online editor at exali. She creates content on topics that are of interest to self-employed people, freelancers and entrepreneurs. Her specialties are risks in e-commerce, legal topics and claims that have happened to exali insured freelancers.
She has been a freelance copywriter herself since 2021 and therefore knows from experience what the target group is concerned about.