What is Media Liability Insurance?
Media liability insurance is a form of errors and omissions insurance. Media liability insurance protects those who distribute information against claims for physical injuries or financial loss caused by erroneous or negligent publication of material. Also known as communications liability insurance or multi-media liability insurance, media liability insurance provides cover from exposures such as defamation, invasion of privacy, factual errors and copyright or trademark infringements.
Who Needs Media Liability Insurance?
Traditionally, media liability insurance covered information distributors such as book, magazine and newspaper publishers, commercial printers, television and radio broadcasters, authors, film producers and advertising agencies. Today, anyone who distributes information to the public via websites, blogs, emails and desktop publishing, faces the same exposures as traditional publishers. Professionals who benefit from a media liability insurance policy include:
- brand managers
- celebrities who make personal appearances
- graphic designers
- freelance journalists
- marketing and promotional companies
- online and interactive marketing companies
- public relations firms
- public speakers
- website developers
- electronic publishers
- cable and satellite broadcasters
- web hosters
- software developers.
What is the Role of Media Liability Insurance?
The first media liability policy was issued by US insurer, Employers Reinsurance Corporation, in response to a growing realisation that those in the media required special protections against the risks inherent in the creation and dissemination of information. Media liability insurance is designed to fill the gaps not covered by traditional liability insurance, such as professional indemnity insurance. It can now be purchased as an adjunct to such insurances and addresses the specific exposures faced by media professionals. One example of these new exposures is those faced by consultants who design, build and host websites for their clients. They not only have traditional liability for duties owed to their clients, but now face new risks such as slander or libel, media and advertising liability and security liability for everything that happens on and to their website, from credit card fraud and misuse of email to third parties illegally accessing the site.Back to top
What Does Media Liability Insurance Cover?
While media liability insurance can be tailored to the insured’s specific circumstances, typical cover in a media liability policy might include cover for liabilities such as:
- Defamation – arising from the communication of false information that damages a third party’s reputation or business. This can include defamation in print or by broadcast (libel) and defamation through oral communication (slander).
- Personal disparagement – a publication or broadcast which causes damage to a third party’s community or business activities.
- Product defamation – demeaning the performance or value of a product.
- Invasion or infringement of one’s right to privacy or publicity – this might include intrusion, public disclosure of private information, unwarranted or wrongful publicity or using a person’s name or likeness for profit.
Typical exclusions in a media liability policy might include:
- normal business activities pertaining to employment
- breach of contract
- patent infringements
- claims made by certain regulatory authorities.
The costs usually covered under a media liability policy include the legal costs in defending a claim, damages awarded to the claimant and in some cases, cover for punitive damages as well.Back to top
Media Liability Insurance FAQs
Q. Why do I need media liability insurance?
Q. What is a ‘claim’?
Q. What is the difference between an ‘occurrence’ and ‘claims-made’ policy?
Q. What is the difference between a costs-inclusive and costs-exclusive excess?
Q. How do I apply for media liability insurance?
Q. What is the retroactive date?
Q. What protection does media liability insurance provide?
Q. When should I notify my insurer of a circumstance that I think might result in a claim?
Q. What is a known circumstance?
Q. What does negligence mean?
Q. What is the limit of liability?
Q. Why do I have to fill out a proposal form?
Make an Enquiry About Media Liability Insurance
Those in the media face a broad range of potential legal exposures. As communication technology evolves, those exposures will change and grow along with it. While media liability insurance was originally designed for traditional media entities such as publishers and broadcasters, it is now becoming a must-have for a wide range of other information providers who want to protect themselves in an environment where the risk of litigation lies around every new corner.