Insurance Giant Threatens to Drop Omnicom Coverage

12 July 2002

Compounding the recent misery of Omnicom Group, leading credit insurance firm Euler Trade Indemnity is threatening to withdraw its coverage of the ad firm’s dealings.

Euler offers media owners insurance to cover their transactions with Omnicom, but recently warned it would drop such policies, putting media firms at risk of losses should the agency group go bust.

After a week of talks, the insurance company has agreed to put off its decision on whether to drop the cover from today (Friday) to after Omnicom’s mid-year results are posted in August.

The news follows a torrid month for the agency giant, following accusations in the Wall Street Journal of accounting irregularities.

Groups whose dealings with Omnicom are insured by Euler include British newspaper publishers Associated Newspapers and Trinity Mirror.

News source: BrandRepublic (UK); additional content by WARC staff