What Is Media Liability Insurance?

Media liability insurance protects against major financial losses by covering legal expenses like lawyer fees, judgments and settlements for businesses that are sued because of content they have published or disseminated. This type of commercial insurance is especially crucial for businesses in the media and publishing industries, but it may also be beneficial for any company that creates content or shares information online.

Continue reading to learn more about business insurance coverage for media professionals, including what is covered by a commercial media liability insurance policy and how much you may have to pay for coverage.

On This Page

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  What Is Media Liability Insurance?

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  What Does Media Liability Insurance Cover?

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  Who Needs Media Liability Coverage?

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  How Much Does Media Liability Insurance Cost?

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  What Are the Risks of Not Having Liability Coverage as a Media Professional?

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  How Do I Choose the Right Media Liability Policy?

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  FAQs

What Is Media Liability Insurance?

Media liability coverage is a subset of professional liability insurance that covers various risks associated with the provision of professional services involving content creation or the publication of information, whether online or in print. Allegations that may result in a liability claim covered by media liability insurance include the following:^[1][2]

While a standard general liability insurance policy already includes some coverage for personal and advertising injury claims, you may need media liability insurance to fully cover the risks your business faces. For example, general liability insurance should cover you if you are accused of defamation in the promotion of your own business, but it may not cover claims related to content your company creates and publishes on behalf of another company, such as social media posts or training materials.^[3]

What Does Media Liability Insurance Cover?

In the event that your business is sued for one of the reasons mentioned in the previous section, your media liability insurance can cover a wide array of legal costs. For example, it could cover expenses related to your legal defense, like attorney fees and costs associated with subpoenaing witnesses. If you go to court and lose, your insurance company may also cover some or all of the damages you are ordered to pay to the plaintiff.

Alternatively, your insurer may pay for a legal settlement so you can avoid going to court altogether. Your policy may also cover some non-legal expenses that arise after a media liability claim, such as the costs of reprinting physical publications, retracting online publications or otherwise correcting or recalling published content.^[3]

What Isn’t Covered?

Unlike a general liability insurance policy, your business media liability coverage will not take care of your legal expenses if you are sued for physically injuring someone or damaging their property. Meanwhile, your insurance company will likely refuse to cover your legal defense if you are sued for intentional criminal conduct, such as securities fraud.^[4]

In addition, media liability insurance differs from other types of professional liability coverage in that it may not cover lawsuits that stem from a breach of contract, although your policy should still provide coverage if another entity experiences a loss after your business fails to meet a deadline.^[4]

You should also keep in mind that media liability insurance policies often come with a hammer clause. As a result, if you reject a settlement that both your insurance company and the person or business suing you agree to, then your insurer will not fully cover whatever settlement you do eventually agree to.^[4]

Who Needs Media Liability Coverage?

Any business that operates social media channels, publishes advertisements or otherwise publicly disseminates content could benefit from media liability insurance coverage. Examples of businesses with the most substantial media liability exposure include the following:^[1][2][3][4]

How Much Does Media Liability Insurance Cost?

In general, it costs an average of $1,034 per year for a business with less than $500,000 in annual revenue to maintain $1 million worth of professional liability insurance.^[5] However, this does not exclusively consider media companies, so your media liability insurance costs could vary. Other relevant factors that will impact your premiums include your liability exposure and claims history.

What Are the Risks of Not Having Liability Coverage as a Media Professional?

Without sufficient liability coverage, your media business could have to bear the full burden of a lawsuit related to content you have published, which could potentially lead to lost profits, layoffs or even bankruptcy, depending on the extent of the claim. Remember that the more content you publish, the higher your liability exposure is, so any business that regularly posts online should consider purchasing media liability protection.

How Do I Choose the Right Media Liability Policy?

Collecting quotes and comparing rates from around three to five different business insurance companies will help you figure out the best deal you can possibly get on the media liability coverage you need. This process may involve giving insurers lots of information about your company, including your location, industry and number of employees, which can take a long time if you try to contact insurance carriers one by one.

Fortunately, SmartFinancial makes the comparison shopping process quick and simple. Answer a few questions about your business and the coverage you need, and we’ll get to work on finding you a personalized commercial insurance policy. If you’d like to get in touch with an agent and compare commercial insurance quotes for free, click here.