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    Media Liability Insurance Defined

    Media liability insurance is often used by businesses in advertising, entertainment, and media. It is a type of errors and omissions policy that addresses legal claims related to the invasion of privacy, copyright infringement, defamation, and plagiarism. It is often part of a cyber liability policy but can contain additional coverage limits that provide greater protection.

    With the rising popularity of social media and Internet use, media liability policies can come in handy when it comes to protecting against liability claims from a current or former client. By investing in media liability insurance policies, companies and individuals can get coverage for legal defense costs and settlements against covered claims related to their services.

    What Is Media Liability Insurance Coverage?

    Some businesses that choose to obtain media liability policies include publishers, PR firms, content and video publishers, and broadcasters. This is because lawsuits and media liability claims are becoming more commonplace, leading to financial losses over small mistakes. This is where media liability insurance cover comes in.

    Although media liability insurance policies can vary across insurance companies, they typically provide coverage for:

    • Invasion of privacy - Including public disclosure of facts that should have been kept private, false portrayals of a situation, intrusion upon seclusion, and misappropriation
    • Advertising claims - Copyright infringement, defamation, and plagiarism due to false or inaccurate advertising claims
    • Negligence - The failure to take reasonable care to avoid causing physical injury or loss to a previous or existing client
    • Missed deadlines - Missing deadlines that may cause a loss of income for clients

    Who Needs Media Liability Insurance?

    Although media liability insurance is typically geared towards media creators, entertainers, and producers, even nonprofits and other businesses can benefit from investing in a media liability insurance policy to protect them against libel, slander, and other legal claims that can occur no matter what industry you're in.

    If your business operates within the media industry and/or conducts the following business activities, it may be wise to invest in a media liability policy:

    • Brand manager
    • Marketing firm
    • Book, newspaper, magazine publisher
    • Blogger
    • Advertising agency
    • Online content provider
    • Spokesperson
    • Author
    • Publisher
    • Public speaker
    • Public relations firm

    How Much Does Media Liability Insurance Cost?

    Although figures may vary depending on the location of your business, level of coverage, specific industry, and company size, media liability insurance can cost around $50 per month or $500 per year.

    What Is Covered By Errors and Omissions Insurance?

    Errors & omissions insurance (E&O) protects companies and their employees against legal cases related to negligent behavior. It has a more general scope compared to media liability coverage and covers court costs and settlements under the insurance contract.

    It is typically purchased by businesses that provide a service or advice to customers, and usually addresses claims related to:

    • Misleading advice
    • Violation of good faith
    • Misrepresentation
    • Negligence
    • Undelivered services
    • Late or missed deadlines
    • Trademark infringement

    Due to pandemic-related events, legal experts in a 2020 virtual conference suggest that E&O claims may substantially increase in size and frequency in 2021 in order to increase legal protection for businesses.

    However, it is important to note that E&O business insurance may not include claims related to customer injuries, employee injuries, employee discrimination claims, and property damage. It also typically excludes coverage for temporary employees, claims made in some jurisdictions, or claims before the date on the stated contract.

    What Level of Liability Insurance Should You Get?

    Financial professionals, regulatory bodies, nonprofits, engineers, medical professionals, and event planners can greatly benefit from E&O policies.

    To determine how much liability coverage you need, you'll need to assess the level of risks you face, which are depending on a variety of factors, such as:

    • Type of business
    • Area of industry
    • Size of company
    • Nature of customers
    • Location of business
    • Number of employees

    The more risks you have, the more coverage you'll need to cover your bases. As you expand the size of your company, you may need to adjust your limits to address growing liability in certain areas. In general, purchasing the maximum coverage limits that your business is able to afford will give you a better safety net to fall back on in the event of a worst-case scenario.

    What Happens If You Have No Liability Insurance?

    You may be wondering whether insurance is crucial for your business. Without proper coverage in place, your business may face a significant fine or penalty depending on the state that you live in. At the bare minimum, the federal government requires businesses with employees to invest in workers' compensation, unemployment, and disability insurance.

    Frequently Asked Questions

    Why do I need liability insurance?

    When should business owners consider liability insurance? The general answer is that it's essential for any business to have coverage, as the protection helps prevent lawsuits. General liability insurance can also cover libel and slander statements if they hurt another person or company.

    How does professional liability insurance work?

    Professional liability insurance is a crucial form of protection for businesses that can protect against claims from their clients. This type of liability insurance commonly covers negligence, copyright infringement, personal injury, and other potential damages.

    There are often differing levels of coverage depending on the severity of risk associated with any given activity, as well as what you might be responsible for doing yourself versus what factors are out of your control.

    What is the difference between professional liability and general liability?

    General liability insurance covers physical risks, such as bodily injuries and property damage. The other type of coverage is more abstract in nature, focusing on E&O of the services your business provides to clients.

    Is there a deductible for liability coverage?

    If you are the one who caused an accident, then there is no deductible when filing liability claims. This means that in a situation where your insurance company pays for damages and/or injuries to another person up to its limits, you will pay nothing out of pocket.

    Whether you are an online blogger, film producer, PR company, news writer, marketing company, or social media influencer, media liability insurance can give media professionals valuable protection from inherent risks that professionals in the industry face. Without this coverage, you'll be held financially responsible for substantial legal fines and settlement fees that you may have to face.

    Having E&O coverage can help your company avoid financial disaster in the event of a lawsuit related to professional advice and other services. For more information on liability policies for your business feel free to read our guide on average monthly costs at Assured Standard.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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