The media industry includes a wide range of entities and organisations, from television stations and news organisations to content providers, streaming companies, online entertainment outlets, and websites.
The nature of these operations can be risky, whether you are an owner, distributor, producer, partner, or creator of associated content. These risks can include everything from media liability and cybersecurity to the protection of reporters, workers, and crews covering disasters, social unrest, and political events.
This is why Insurance for media companies exists. And, for anyone in the media industry who creates and distributes content, media liability insurance is the most important protection to purchase. But what exactly is media liability insurance? What type of wide protection can it offer to media professionals? We’ll go over that and more below.
Key Takeaways
- Media liability insurance protects content creators and media businesses from lawsuits like defamation, copyright infringement, and privacy violations.
- It covers legal defense costs, settlements, and court fees tied to professional mistakes like missed deadlines or publishing errors.
- General liability insurance isn’t enough—media professionals need this specialized policy for content-related risks.
- Common clauses like the “Consent to Settle” and “Hammer Clause” affect how claims and settlements are handled.
- Exclusions may apply (e.g., bodily injury, criminal acts, and breach of contract), so review your policy carefully.
- Media companies should also consider cyber liability, workers’ comp, and crime insurance for fuller protection.
What Is Media Liability Insurance?
Media liability policies are often categorised under professional liability insurance. Also called errors and omissions insurance (E&O). E&O is a type of specialised coverage that protects individuals and businesses from professional mistakes (those that cause financial loss to a client).
In which case, this type of liability insurance is considered an endorsement of a larger policy, and typically provides coverage for:
Work mistakes: If a client claims that you’ve made a mistake relating to your media services, one that resulted in their financial loss, they can file a lawsuit.
Missed deadlines: A missed deadline could result in a loss of income for your client, among other problems. If this happens, your client may end up taking you to court to try to recover their losses.
Negligence: Negligence refers to mistakes that are either wilful or unintentional. If your client believes you have acted negligently, they may file a claim.
Advertising injury: Advertising injuries are often covered by a general liability insurance policy. However, due to the pervasive nature of media, people who work directly in the industry may be excluded if they are accused of plagiarism, copyright infringement, or defamation. If a claim or lawsuit is filed against them, media liability insurance fills the gap.
Invasions of privacy: Typically include four separate wrongdoings: intrusion upon seclusion, misappropriation of someone, falsely portraying a person or entity, and the public disclosure of facts that should have been kept private.
If any of the aforementioned claims are filed a media liability insurance coverage can help protect an individual or corporation. But how exactly?
What Exactly Media Liability Insurance Cover?
Legal defense is the most important thing that a media liability insurance policy covers. Why? Because advertising errors (plagiarism, libel, defamation, etc.) often end in a client getting litigious. Thus, a policy typically covers the expenses associated with employing a legal team and investigating a given claim. Even if you are not at fault, the process itself can be costly.
This coverage includes (but is not limited to):
- Legal expenses
- Court-ordered penalties
- Settlement payout
The reality is that media liability lawsuits can be pretty expensive, which is why it’s always recommended that you choose a large enough limit; otherwise, your coverage may be insufficient to protect 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 section of your policy states that once the review process has begun, your insurer will not settle unless the policyholder provides 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 standard practice for media liability insurance coverage, it is worth noting.
What Media Professionals Need This Coverage?
A professional liability policy can provide wide coverage in a variety of industries:
- Broadcasters
- Marketing Agencies
- Media companies
- Advertising agencies
- Communication
- Music publisher
- Newspaper publisher
- Brand managers
- Public Speakers
- Publishing
- Photography
- Video/Film
- TV
As you can see, many businesses create content that puts them at risk of being sued.
Before you apply for media liability coverage, make sure you’re fully prepared. This checklist will help you gather the right information and ensure your business is ready.
Media Liability Coverage Readiness Checklist.PDF
How does a Media Liability Policy Work?
If someone files a media liability claim against you or your company, media liability will cover (but is not limited to):
- Libel
- Slander
- Data breaches
- Negligence, mistakes, or errors
- Breach of nondisclosure / confidentiality
- Invasion of Privacy
- Plagiarism
- Malicious prosecution
- Copyright infringement
- Patent infringement
- Intellectual property infringement
- Intentional infliction of emotional harm
Make sure the insurance policy you purchase covers the perils/intentional torts that put you most at risk. If they are excluded from the policy, ask if they can be added as an endorsement. If not, now is the time to shop around.
Your insurance carrier will cover media liability lawsuits filed against you up to the limits of your particular insurance plan. Usually, there is a “per claim” or “occurrence” limit as well as a “aggregate” limit, which is the total amount they will pay out during the policy period.
Instances of Media Liability Insurance Coverage?
Here are some examples of the types of claims that this policy covers:
Example #1: As a newspaper publisher, you are responsible for approving any information that is published or circulated. Your writers all use anonymous sources for their projects. One of your writers mistakenly divulged a source’s private information, prompting a lawsuit against your company for breach of confidentiality and emotional distress. Your media liability insurer will provide you with legal defense for court and, if necessary, pay for settlements.
Example #2: You are in the film production industry and have recently released a new film. A composer hears your soundtrack and believes you’ve used some of his music without proper license. If a music publisher sues your film production company for copyright infringement and demands back payment, your media liability insurance will cover the claim.
Example #3: You are a well-known blogger, and your website has a large following. You’re always careful to share only verified, evidence-based information. You recently wrote about a local restaurant and the multiple health code violations they have been charged with. They sue you for defamation, claiming that what you shared was false and caused them to lose customers. Media liability insurance will help pay for legal fees and settlements.
Isn’t Advertising Injury Covered by General Liability?
General liability insurance covers third-party bodily injury, third-party property damage, and advertising injuries (sometimes known as intentional torts). So, why do you need media liability insurance? Surprisingly, most general liability insurance providers will not cover advertising injury if you work in a high-risk industry. So, if you work in publishing, advertising, or broadcasting, you need get media liability insurance to protect yourself and your company from risk.
Exclusions of Media Liability Policies
The insurance industry often excludes these things from professional liability policies:
- Bodily injury or property damage: These are specifically covered under a general liability insurance policy.
- Criminal acts: Insurance companies will pay for your legal defense and court fees unless you are found guilty or admit to committing the crime.
- Contract/Patent infringements: If you infringe on or copy someone else’s intellectual property, media liability will not help.
- Breach of contract: If you violate a confidentiality agreement you had with an informant, you can be charged with breach of contract. Insurance companies will provide someone to defend you, however settlements may not be covered.
- Employment practices: If you are accused of discriminatory practices, you need employment practices liability insurance (EPLI).
- Securities fraud: If you are found guilty of securities fraud, you will be denied coverage.
Important Insurance Clauses to be Mindful of
Check your errors and omissions insurance policy to find out if any of these clauses or exclusions are included.
International Coverage: Does your policy protect your organisation if you discuss international topics that could spark a lawsuit outside of the country? This coverage is not included in every policy.
Punitive Damages: Most policies include coverage for punitive damages, but some do not. Punitive damages are uncommon but costly, so be sure to check.
Consent-to-Settle Clause: Some policies include a clause that allows you, the policyholder, to give final consent on a settlement.
The “Hammer” Clause: This is another common clause that allows the insurance company to impose a penalty if you cannot reach an agreement on a settlement. This often means that they will pay less for the settlement.
Retraction Clause: Ensure that your policy gives you the right, as the content publisher, to modify or retract content as you see fit.
Finally, does your insurance cover the costs of complying with an injunction? If you have to retract previously published materials, it can be pretty expensive.
Other Business Insurance for Media Companies To Consider
Here are some other insurance policies to consider:
Cyber Liability Insurance: If you are the victim of a data breach or hack, cyber liability insurance can provide credit monitoring and even cover ransom demands.
Commercial Crime Insurance: If your company has a physical location, you should consider purchasing crime insurance to cover its contents.
Workers’ Compensation Insurance: If you have employees, you are legally obligated to get workers’ compensation insurance. It pays for their medical bills and lost wages if they are injured at work. It also protects business owners from high-cost claims.
What Insurance do I Need as a Social Media Manager?
When you interact with clients or the general public, public liability insurance is a must. If someone is accidently hurt on your property or in connection with your business, you will be held accountable.
Can I Insure My YouTube Channel?
Content creator insurance is a comprehensive insurance policy that protects YouTubers against a wide range of risks, including copyright infringement, defamation, privacy invasion, errors and omissions, and cyber liability.
Conclusion
Media Liability Insurance is no longer optional—it’s essential. In today’s digital world, where one post, broadcast, or publication can lead to legal backlash, having the right coverage protects you from costly lawsuits, reputation damage, and business disruption. Whether you’re a content creator, advertising agency, or media company, this insurance acts as a financial safety net against claims of defamation, copyright infringement, or invasion of privacy.
Don’t wait until a legal issue arises. Speak with a qualified insurance advisor and get covered—because in media, mistakes can go viral, but your protection should go deeper.
Related Articles
- Media Insurance Coverage: Why I Had to Learn About Media Insurance the Hard Way
- Media Production Insurance: Why You Really Need It
- Crisis Management Insurance Coverage: How It Works
- Professional Insurance Providers: Our Best Picks for Businesses
References
