Designer and agency claims: IP and brief-error examples

Reviewed by Apex Insurance Brokers · Last reviewed 2026-08-05

Creative work carries a specific kind of risk: the mistakes are visible, they are permanent once printed or published, and they frequently involve someone else's rights. A single overlooked licence or an approved-but-wrong price can generate a claim that dwarfs the fee you charged for the job.

Below are anonymised, illustrative scenarios drawn from the sorts of disputes that affect UK design studios, branding consultancies and marketing agencies. They are examples only — not real firms — but they reflect how professional indemnity (PI) cover is intended to work in practice.

Intellectual property claims

IP claims usually turn on permission. A designer or agency is expected to know the difference between "royalty-free", "rights-managed" and "editorial use only" — and a client will look to you when that distinction is missed.

Stock image used beyond its licence. A studio buys a photograph under a licence that permits web use only, then places it across a client's printed brochure run. The library's licensing enforcement team issues a demand for the unlicensed usage plus back-dated fees. The client refuses to absorb it and turns to the studio that specified the asset.

Font embedded without a commercial licence. An agency designs a mobile app interface using a typeface licensed only for desktop mock-ups. When the font is embedded in the shipped product, the foundry asserts infringement and seeks a settlement. The cost of retro-licensing across every install can be substantial.

A logo too close to an existing mark. A branding consultancy delivers an identity that a third party later argues is confusingly similar to their registered trade mark. Even where the consultancy acted in good faith, the client faces a rebrand, and pursues the consultancy for wasted design fees, reprinted signage and stationery.

Reused deliverables without clearing rights. A freelancer repurposes illustration work created for one client into a pitch for another, without checking who owned the original artwork. The first client alleges its commissioned material was used without consent.

PI policies commonly extend to infringement of intellectual property rights — frequently including copyright, and often trade mark, though breadth varies by insurer. Deliberate or reckless infringement is not covered; an honest professional error typically is. This is exactly why reading the specific wording matters.

Check whether your current PI wording includes IP infringement →

Brief-error and print claims

Brief errors are the quiet, expensive ones. The design may be excellent; the problem is a factual mistake carried through to a finished product that cannot be un-printed.

• Wrong price on a printed campaign. An agency lays out a retail flyer showing an incorrect offer price. The run of 50,000 leaflets is distributed before anyone notices, and the client claims the cost of the reprint and lost promotional impact.
• Misspelled name or wrong contact details. A studio produces exhibition banners carrying a transposed phone number, making the client's stand materials unusable at a trade show.
• Incorrect specification sent to print. A design firm supplies artwork in the wrong colour profile or bleed, and a large packaging run is rejected by the buyer.
• Missing regulatory or legal text. An agency omits a required disclaimer or ingredient list a client had provided, forcing pulped stock and a fresh print run.

Where a genuine professional error causes the client a financial loss, PI cover can respond to that loss and to your defence costs. Many wordings also provide for reprint or rectification costs — but this is an area where policies differ sharply, so it should never be assumed.

How the two claim types compare

What actually determines whether you're covered

Two claims can look identical and resolve very differently. The outcome usually hinges on three things:

• The policy wording. Whether IP infringement and reprint costs are included, excluded or sub-limited is written into the schedule. Read it before you need it.
• Your limit of indemnity. Illustrative limits such as £1m, £2m or £5m are common options. A single large print run or rebrand can erode a modest limit quickly — match the limit to your biggest realistic job, not your average one.
• Your records. Signed-off proofs, saved licences and clear terms of business are the difference between a defensible position and an indefensible one. Insurers and courts both look at the paper trail.

A practical point on contracts: agreeing to indemnify a client for any loss, or accepting liability well beyond your fee, can create exposure your PI policy was never designed to meet. Keep contractual liability proportionate and get wording checked before you sign.

Common questions

Does PI cover the cost of reprinting after my mistake?

Often, yes — many creative PI policies include reprint or rectification costs where a genuine error caused the loss. But it is not universal and can be sub-limited, so confirm it is written into your wording rather than assumed.

Am I covered if I accidentally infringed copyright or a trade mark?

Many PI policies extend to unintentional infringement of intellectual property rights. Deliberate or reckless infringement is excluded. Keeping licences and clearance records is the single most useful thing you can do to support a claim.

The client signed off the proof — am I still liable?

Written sign-off strengthens your position considerably, but it does not always end the argument, particularly if the error sat in material you supplied. It is a strong defence, not a guarantee — which is exactly why PI cover still matters.

Talk to Apex about PI cover built for creative work →

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This guide is general information, not advice on a specific policy or a substitute for your policy wording.