While engaging in digital strategies may pose various benefits, doing so also carries media liability exposures. After all, any business that posts or shares content—physically and online—could be held liable for third-party harm or damage resulting from such content. Moreover, media liability losses are rising in cost and frequency; industry research recently revealed that these losses could reach up to $150,000 per incident. Further, this research found that most business executives plan to increase their social media budgets in the coming years, generating additional avenues for media liability losses.
Although some businesses assume they will be protected against these losses under their commercial general liability (CGL) coverage, particularly against personal and advertising injury incidents, CGL policies often contain media-related exclusions. Therefore, businesses must consider media liability insurance to prevent coverage gaps. This article offers more information on media liability insurance, identifies which businesses need such coverage, and explores potential claim scenarios.
Media Liability Insurance Coverage Explained
Media liability insurance is considered a specialized type of errors and omissions coverage. It can provide protection for costs related to businesses being held responsible for third-party harm and damage—actual or alleged—stemming from posted or shared content (e.g., videos, articles, blogs, photographs, illustrations, music, films, advertisements, and short-form promotional copy). Covered incidents under media liability insurance may include the following:
- Libel, slander, product disparagement, and other forms of defamation
- Invasion of privacy (e.g., intentionally intruding on the solitude or seclusion of another party, publicly disclosing private information, or misappropriating an individual’s name or likeness)
- Infliction of emotional harm on another party (e.g., posting content that distresses specific individuals or is deemed unsuitable for some audiences)
- Copyright and intellectual property infringement, piracy, plagiarism, and other instances of posting another party’s content without credit or permission
- Breach of professional duty, confidentiality, and licensing agreements
- Professional negligence (e.g., including or omitting information within content that leads to the false portrayal of a situation, individual, or organization)
Following these incidents, media liability insurance can provide coverage for policyholders’ legal defense costs and potential settlements or payouts to third parties. It could also cover third parties’ legal fees, investigations from regulators or other authorities, content revision and restoration costs (e.g., recalling content, correcting content, and reprinting or reposting content), and public relations and crisis management expenses.
However, media liability insurance generally excludes losses related to fraudulent or dishonest acts, employment practices, patent infringement, property damage, bodily injuries, faulty products or services, breach of contract, and allegations from parties with controlling interest in policyholders’ operations.
Which Businesses Need Media Liability Insurance Coverage?
Any businesses that create or provide physical or digital content may need media liability insurance. Such businesses include the following:
- Brand development, public relations, marketing, and advertising agencies
- Social media, and editorial consulting firms
- Record labels and other music companies
- Market research and telemarketing organizations
- Graphic design, photography, videography, and blogging companies
- Television and radio broadcasting firms
- Copywriting, proofreading, printing, and publishing organizations
- Media production companies, including those that provide streaming services
- Consulting firms involved in publishing white papers or training materials
- Non-media companies that frequently post or share content on digital platforms (e.g., websites and social media)
Media Liability Insurance Claim Scenarios
Here’s an outline of possible claim scenarios that media liability insurance could cover:
- A food blogger posts a negative online review of a popular restaurant, accusing the restaurant of using spoiled ingredients. The restaurant sues the blogger for libel, asserting that this accusation is false and has resulted in lost customers.
- A marketing agency creates a video advertisement and shares the ad on social media. A music company sues the agency for copyright infringement, alleging that it used one of the company’s songs in the advertisement without getting it licensed.
- A radio broadcaster befriends a celebrity to gather “dirt” for an upcoming gossip segment on their show. Unaware of the broadcaster’s intentions, the celebrity divulges private information. The broadcaster then reveals this information on their show. Upon release of the show, the celebrity sues the broadcaster for invasion of privacy.
While engaging in digital strategies may pose various benefits, doing so also carries media liability exposures. After all, any business that posts or shares content—physically and online—could be held liable for third-party harm or damage resulting from such content. Moreover, media liability losses are rising in cost and frequency; industry research recently revealed that these losses could reach up to $150,000 per incident. Further, this research found that most business executives plan to increase their social media budgets in the coming years, generating additional avenues for media liability losses.
Although some businesses assume they will be protected against these losses under their commercial general liability (CGL) coverage, particularly against personal and advertising injury incidents, CGL policies often contain media-related exclusions. Therefore, businesses must consider media liability insurance to prevent coverage gaps. This article offers more information on media liability insurance, identifies which businesses need such coverage, and explores potential claim scenarios.
Media Liability Insurance Coverage Explained
Media liability insurance is considered a specialized type of errors and omissions coverage. It can provide protection for costs related to businesses being held responsible for third-party harm and damage—actual or alleged—stemming from posted or shared content (e.g., videos, articles, blogs, photographs, illustrations, music, films, advertisements, and short-form promotional copy). Covered incidents under media liability insurance may include the following:
- Libel, slander, product disparagement, and other forms of defamation
- Invasion of privacy (e.g., intentionally intruding on the solitude or seclusion of another party, publicly disclosing private information, or misappropriating an individual’s name or likeness)
- Infliction of emotional harm on another party (e.g., posting content that distresses specific individuals or is deemed unsuitable for some audiences)
- Copyright and intellectual property infringement, piracy, plagiarism, and other instances of posting another party’s content without credit or permission
- Breach of professional duty, confidentiality, and licensing agreements
- Professional negligence (e.g., including or omitting information within content that leads to the false portrayal of a situation, individual, or organization)
Following these incidents, media liability insurance can provide coverage for policyholders’ legal defense costs and potential settlements or payouts to third parties. It could also cover third parties’ legal fees, investigations from regulators or other authorities, content revision and restoration costs (e.g., recalling content, correcting content, and reprinting or reposting content), and public relations and crisis management expenses.
However, media liability insurance generally excludes losses related to fraudulent or dishonest acts, employment practices, patent infringement, property damage, bodily injuries, faulty products or services, breach of contract, and allegations from parties with controlling interest in policyholders’ operations.
Which Businesses Need Media Liability Insurance Coverage?
Any businesses that create or provide physical or digital content may need media liability insurance. Such businesses include the following:
- Brand development, public relations, marketing, and advertising agencies
- Social media, and editorial consulting firms
- Record labels and other music companies
- Market research and telemarketing organizations
- Graphic design, photography, videography, and blogging companies
- Television and radio broadcasting firms
- Copywriting, proofreading, printing, and publishing organizations
- Media production companies, including those that provide streaming services
- Consulting firms involved in publishing white papers or training materials
- Non-media companies that frequently post or share content on digital platforms (e.g., websites and social media)
Media Liability Insurance Claim Scenarios
Here’s an outline of possible claim scenarios that media liability insurance could cover:
- A food blogger posts a negative online review of a popular restaurant, accusing the restaurant of using spoiled ingredients. The restaurant sues the blogger for libel, asserting that this accusation is false and has resulted in lost customers.
- A marketing agency creates a video advertisement and shares the ad on social media. A music company sues the agency for copyright infringement, alleging that it used one of the company’s songs in the advertisement without getting it licensed.
- A radio broadcaster befriends a celebrity to gather “dirt” for an upcoming gossip segment on their show. Unaware of the broadcaster’s intentions, the celebrity divulges private information. The broadcaster then reveals this information on their show. Upon release of the show, the celebrity sues the broadcaster for invasion of privacy.
The Last Word
Media liability exposures can lead to significant losses for businesses. As many businesses utilize digital strategies and invest in social media, they must secure the proper coverage for potential media liability incidents. Businesses should consult trusted insurance professionals to discuss particular coverage needs. For further insurance guidance and solutions, contact an InsureGood Advisor today.
