The global media landscape continues to evolve, faster than ever, which has led to increased risks for those who work in the media. The need for protection against liability in the media is no longer limited to the media industry alone. Thanks to modern technology and social media, media liability is a concern for anyone with an online presence creating content. Increasingly, businesses across many sectors are finding the need to add media liability coverage to their umbrella. Allegations of libel, copyright infringement, defamation, negligence, or other similar claims can result in expensive legal battles and damage to your company’s reputation. But before you jump into adding media policies to your portfolio, there are key things you should know about media liability coverage, including why it exists, and some tips to get the best coverage.
What is media liability coverage and when did it start?
Did you know media coverage pre-dates the American Revolution? Long before “Freedom of the press” was adopted as part of the Bill of Rights in 1791, the earliest newspapers were plagued by censorship from Britain’s government. In fact, one of the first court cases involving freedom of the press was in 1734 (Check out Crown v Zenger for a good read!).
Shortly after, when defamation laws were being developed, the need to protect individuals in the media industry from libel and slander was born.
Fast forward several hundred years and several iterations of the legal meaning of libel and of course, the expanding number of newspapers and other media outlets, the demand for comprehensive media liability coverage to protect media companies from the expenses associated with lawsuits also grew. So, the insurance industry stepped in, creating stand-alone media liability coverage that is now more important than ever. This specialized form of errors and omissions (“E&O”) insurance expanded coverage from standard risks to include newer risks like invasion of privacy, misappropriation of likeness, copyright infringement, and beyond.
Today, media liability is a crucial safeguard for entities engaged in content creation and distribution. Here are 10 things to keep in mind when looking for media liability coverage.
Ten things to know about media liability.
- Not Just Traditional Media
With evolving technology and social media, media liability is not just for traditional media companies. Any individual or business creating and distributing content may need to consider this coverage. - Worldwide Coverage
Most media liability policies offer worldwide coverage, ensuring that the policy holder is covered wherever their business takes them. - As needs have evolved, so has coverage.
Broad coverage is available, providing coverage for defamation, invasion of privacy, copyright infringement, misappropriation of likeness, and more. - Legal Defense Included
Media liability policies usually provide coverage for legal defense costs. Be sure to read the policy to determine the extent to which legal defense costs are covered. - Freedom of Speech Covered
Coverage for defense costs relating to the First Amendment and Subpoena Defense are available for most media liability policies.
- Creation and Distribution
Coverage for professional services relating to the content being created and distributed is available on most policies. A media company that provides professional services may need to consider this coverage as well. - Occurrence Based
Media policies are often written on an occurrence policy form. This type of policy form provides coverage for claims that occur during the policy period regardless of when the claim is brought. - Claims Reporting
Timely reporting of a claim, or potential claim, to the carrier is particularly important. Failure to report a claim as outlined in the policy form could result in denial of coverage. - Exclusions
All policies have exclusions, be sure to read them. The exclusions could leave a gap in coverage, such as intentional acts or contractual liabilities that are typically covered by a media policy. - Customized Coverage
There are companies or individuals that will sometimes have unique media exposure. Most media policies can be tailored to fit a unique exposure when it is content oriented.
Conclusion
When you work in the media industry, you are constantly at risk of liability claims related to the content you are producing. Media Liability is no longer a luxury or a ‘it would be nice to have’ type of coverage. In today’s increasingly litigious environment and tumultuous and challenging media landscape, proper media liability coverage is indispensable. Be sure you are prepared for the unexpected. Skyward Specialty is proud to serve the media liability market and we look forward to helping you craft the perfect coverage for your clients’ needs.
For more information on Skyward Specialty Media Liability coverage, download the information sheet below, or contact us directly!
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