The power of the media is staggering. With the current prevalence of virality and misinformation, along with the sheer number of individuals connected to the Internet, small mistakes can become serious problems. The truth can be misunderstood as lies. Old tweets and comments can resurface. And if your company makes a mistake in media or advertising, it may face significant financial consequences.
This is why media liability insurance exists.
But what exactly does media liability insurance coverage mean? What type of wide protection can it offer media professionals? We’ll go over that and other details below.
Key Takeaways
- Media liability insurance is a specialised solution designed to protect authors, publishers, and online content creators from risks such as defamation, plagiarism, and copyright infringement.
- Media liability lawsuits are on the rise, and they can be difficult and expensive.
- Media liability covers a variety of communication outlets, including distributed media (such as blogging and vlogging), broadcasting (such as radio), publishing (such as print books), and social influencers.
- Media liability insurance protects against a variety of risks, including copyright infringement, trademark infringement, plagiarism, defamation, and invasion of privacy.
Introduction to Media Liability
Media liability refers to the legal risk that an organisation faces when it creates and distributes content, whether through digital platforms like websites and social media or traditional media like print, television, and radio. It involves the potential obligation to compensate people for any harm caused by the content. This harm could include reputational damage, privacy violations, or intellectual property infringement.
Different types of media are not necessarily bad, but they can cause problems depending on what is shared. Any organisation that publishes or shares content, whether a single blog post or social media image, can face legal consequences.
What is Media Liability Insurance Coverage?
Media liability insurance is a form of errors and omissions insurance that protects an organisation against financial loss resulting from claims based on the content it creates, publishes, or distributes. This could include online content such as text, pictures, audio, video, or user-generated content uploaded on websites, blogs, social media, or other online platforms. It may also include content that is provided through traditional channels, such as signage, brochures, TV or radio commercials, print adverts, flyers, and press releases.
Occurrence vs. Claims-Made
Media liability plans can be structured as either an occurrence or claims-made. Here is the difference:
Occurrence policies cover all incidents that occur within the policy period, regardless of when a claim is filed. For example, if your organisation violated a copyright in 2021 but the lawsuit is filed in 2023, an occurrence-based policy from 2021 would apply.
In contrast, Claims-made policies cover all claims made during the policy period, regardless of when the alleged wrongful act happened.
In today’s insurance market, media liability policies tend to be written as claims-made. This structure helps insurers in managing “long-tail” risk, which is common with media claims that can surface years after the content is published.
Claims-made policies impose stricter reporting requirements. Many require notice of a claim—or even a possible claim—within a limited time frame (often as little as 30 days). Failure to notify the insurer within that window may jeopardise coverage.
What Does Media Liability Insurance Cover?
With such a wide range of risks, companies can rely on media liability insurance to protect against many widespread fears. The following list highlights what this policy covers:
- Defamation, libel, and slander: claims for publishing alleged false or damaging remarks about a person or company.
- Invasion of privacy: disclosing private information or using someone’s likeness without consent.
- Copyright infringement: using copyrighted material such as photographs, music, text, or video without the necessary permit or licensing.
- Trademark infringement and trade dress violations: the improper use of logos, brand names, or design elements that cause confusion with another brand.
- Plagiarism or misappropriation of content: republishing or copying content without proper credit or rights.
- Advertising injury
- Intentional torts
- False light
- False imprisonment
- Infliction of emotional distress
- Failure to maintain the confidentiality of a source
- Outrageous conduct
Risks that are sometimes covered
While media liability insurance typically excludes the following risks, coverage may be offered through a policy extension or endorsement.
- Third-party/user-generated content – This may be covered if the policy includes specific UGC protections.
- Regulatory violations – usually excluded unless specific privacy or compliance coverage is incorporated (e.g., HIPAA, GDPR).
- Satire/parody risks – covered only if they do not include intentional harm or defamation. Often subjective.
The most important aspect that a media liability insurance coverage helps cover is Legal defense. Why? Because advertising errors (plagiarism, libel, defamation, etc.) usually result in a client getting litigious. Thus, a policy often covers the expenses associated with employing a legal team and investigating a given claim. Even if you are not at fault, the procedure itself can be costly. This coverage includes (but is not limited to):
- Legal fees
- Court-ordered penalties
- Settlement payout
The reality is that media liability lawsuits can be pretty costly, which is why it’s always recommended that you choose a large enough limit; otherwise, your coverage may be insufficient to shield you from a massive payout or legal fee.
To that end, when it comes to settling in court, there are usually two different clauses under a media liability policy that you should be aware of:
- Consent to Settle – This part of your policy states that once the review process has begun, your insurer will not settle unless the policyholder gives consent.
- Hammer clause – This clause follows “consent-to-settle,” and states that if the policyholder does not agree to an acceptable settlement between the insurer and the claimant, a penalty will be imposed. Typically, this penalty reduces the amount the insurer is willing to pay the policyholder in the final settlement.
One could argue that the two clauses are contradictory. On the one hand, the insurer gives the policyholder the flexibility they desire. However, if the policyholder disagrees with the settlement, they will be penalised. While this is normal practice for media liability insurance coverage, it is worth noting.
Who Needs Media Liability Insurance?
As one might expect, individuals who work in (or flow into) media benefit from this type of coverage. Some examples of professions that benefit from a media liability insurance policy include, but are not limited to:
- Bloggers
- Advertisers
- Writers
- Publishers
- Marketers Influencers (particularly social media influencers)
- Journalists
- Broadcasters
- Photographers
- Podcast hosts
- Social Media Consultants
- Film Producers
- Tech and SaaS Companies
- Retail and E-commerce Brands
- Healthcare, Legal, and Professional Services Firms; Professionals who share insights through newsletters, webinars, or educational content.
- Any Business with a Strong Online Presence
What Does a Media Liability Insurance Policy Exclude?
All insurance policies include exclusions. Media liability insurance is no different. When deciding on a policy, keep in mind that a media liability policy often excludes:
Criminal or nefarious acts – Crimes are not covered. However, insurance can come into play before a crime is discovered to have been committed.
Bodily harm – Media liability insurance does not cover physical damage.
Property damage – Media liability insurance does not cover any physical damage.
Breach of contract – When a contract is broken, it is typically excluded from a media liability policy.
Patent Infringement – If a patent owner’s rights are violated, the claim will be excluded from the policy.
Securities fraud – If it is discovered that securities fraud was committed, the coverage is void.
Media Liability Lawsuit Scenarios
It’s difficult to picture well-intended words or acts having unintended consequences, such as causing emotional distress to another person or invading someone’s privacy. However, such lawsuits are filed on a daily basis.
For example, when the Daily Mail published a piece saying Kiera Knightley had an eating disorder, she not only sued them, but she won the case and donated her settlement to charity. Aside from celebrities, consider the following everyday scenarios:
- A client filed a lawsuit against a financial services company over advice posted on their blog. The client lost money as a result of following the advice in the blog post.
- A music publisher sued the company after it released a marketing video clip for a new product line, using their song without permission.
- Several competitors were listed in a company blog post describing the quality of local services. One of the competitors filed a lawsuit against the corporation, claiming that the post had damaged its reputation.
- A book publisher sued another publisher for trademark infringement, claiming that an unreleased book’s cover caused market confusion due to similarities to another series of books.
- In a $3 million libel lawsuit, a school principle sued a newspaper publisher over an article saying the principal was favouring his own son in disciplinary action.
- When a product failed to perform as promised in a popular YouTube video, a dissatisfied consumer sued the video’s creator for deceptive advertising.
What Are The Benefits of Media Liability Coverage?
There are numerous benefits to getting media liability coverage, but the most valuable is peace of mind. As a media solutions provider, there is a possibility that your client would be dissatisfied with what you deliver. In the unlikely event that customers sue you for failing to provide the promised service, misappropriation, or invasion of privacy, the policy will protect your company.
How Much Does Media Liability Insurance Cost?
A variety of factors can influence the cost of a media liability insurance coverage. For example, your company’s location and industry could have a big impact on insurance rates you receive.
Comparing media liability, E&O, and cyber insurance
In general, companies that provide media should actively consider three types of coverage: media liability insurance, E&O insurance, and cyber insurance. Let’s look at what each coverage offers.
- Media liability insurance: protects media companies from third-party claims for advertising harms such as slander and libel. It also covers claims resulting from work mistakes, oversights, or missed deadlines.
- Errors and omissions insurance: This is necessary for every business providing professional services. The insurance covers any third-party claims for negligence or inadequate work.
- Cyber liability insurance: considered a specialist insurance product, covers your company in the event of a data breach that results in the theft of sensitive client information.
What Does MPL Insurance Cover?
If you cater to professional clients, you can help protect their finances through Miscellaneous Professional Liability Insurance which is intended to protect a wide range of professions, and it often covers the costs of legal defence, settlements, and judgements resulting from claims brought against the insured.
Is Social Media a Liability?
Yes, social media can be considered a liability for businesses and individuals. Social media liability encompasses a broad range of legal and financial risks companies may face as a result of their online activities. These risks can stem from the acts of employees, customers, or even third parties, and they can have serious ramifications for a company’s reputation and financial line.
What’s the Difference Between Media Liability and General Liability Insurance?
The main difference is that, while a conventional general liability insurance policy covers advertising injury, it seldom covers all of the risks that media companies face. Even without media liability coverage, your company can be held liable for offences such as libel and slander if it engages in any type of publishing, advertising, or broadcasting.
Conclusion
In today’s fast-paced digital world, where content is created and shared at lightning speed, media liability insurance is no longer a luxury—it’s a necessity. From bloggers to global brands, the potential for legal disputes over content is ever-present. By investing in the right coverage, businesses and individuals can protect themselves from costly claims and reputational damage.
Whether you’re publishing a blog, posting on social media, or launching a marketing campaign, media liability insurance provides the peace of mind needed to create with confidence and responsibility.
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