Does Your Business Need Media Liability Insurance?

Businesses operating in media and advertising are often tasked with producing a significant amount of content in a fast-paced environment. Given the large audiences and extensive exposure these companies’ products may garner, there are significant risks and vulnerabilities to account for. Fortunately, a media liability insurance policy can provide critical financial assistance and limit out-of-pocket losses in the aftermath of an error or incident.

Who Needs Media Liability Insurance? 
In today’s digital age, there is no shortage of businesses that make creating, producing or marketing content an integral part of regular operations. Specifically, the following may find value in media and advertising insurance:

• Authors
• Entertainment companies
• Broadcasters
• Publishers
• Advertising agencies
• Digital marketing agencies
• Web designers
• Social media consultants

What Does Media Liability Insurance Cover? 
Media liability insurance can be viewed as a specialized form of professional liability insurance (also known as errors and omissions insurance). This type of coverage can provide financial resources in response to various allegations or incidents during the creation, production, distribution or advertising of your content.

By acquiring and maintaining a good media liability insurance policy, your business can be well-equipped to respond to the following issues:

• Errors and oversights—If a client sues your company for a professional error, such as inadequate products, substandard services or negligence, your insurance can help pay for damages.
• Missed deadlines— A client’s lawsuit can have significant financial ramifications if your business fails to meet an agreed-on deadline. Media liability insurance may provide financial assistance for various legal costs, including representation, judgments and settlements.
• Advertising injuries—This coverage can protect your business in the wake of the following incidents:
  • Defamation (e.g., libel, slander)
  • Intellectual property theft
  • Invasion of privacy (e.g., publishing private information or using a person’s photograph without permission)

Companies involved in media and advertising should be aware that the aforementioned issues may often be excluded from general liability insurance, making media liability coverage essential.

Get the Right Coverage 
Given how quickly information travels in today’s world, a piece of content your business produces could be seen by thousands of people in a short time. This means that the stakes are high for every part of the production cycle. Regardless of how diligent and careful your business may be, even a slight error or oversight could be widely distributed quickly and result in significant losses for your business, clients and other third parties. Without media liability insurance, the resulting out-of-pocket costs could devastate your company’s finances and future.

We’re here to help. At Ranch and Coast Insurance Services, our agents have the expertise and experience to help media and advertising businesses throughout southern California, Texas, Arizona and Colorado assess and address their insurance needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.