All the world’s a stage, and all the businesses are ‘media’ players. Today, almost every single company creates, produces, and/or markets content to clients. Whether they do so through traditional means like advertisements, articles, videos, photographs, and broadcasts, or they use newer avenues like social media, podcasts, and other web-based platforms, all companies that engage in any marketing and communication have media liability exposures.
What are the main exposures?
Media liability insurance provides coverage against allegations of disparagement, libel, slander and copyright infringement as a result of errors, omissions and negligence in the gathering, creating and communication of an insured’s material. While traditional media companies in sectors like advertising, marketing, publishing and broadcasting may be equipped to understand and mitigate media liability risks, non-traditional firms (almost all other businesses) must also pay close attention to potential exposures like copyright infringement, defamation, and advertising injury.
Typically, companies carry media liability exposures in three key areas:
• Operations
• Products
• Promotions
Even innocent actions can be costly
Even seemingly innocent actions can lead to costly media liability lawsuits. For example, if an insured uses a photograph taken in front of a famous sports stadium for a print advertisement, that sports team could sue the insured for brand appropriation, especially if the advertisement creates the impression that the team is endorsing a particular product or message. Other common examples include trademark infringement claims if one company’s branding is too similar to another’s, false or misleading advertising, and plagiarism allegations tied to articles and blog posts.
How to limit media liability risks
One way for companies to transfer their media risk is to purchase insurance. There are multiple ways for businesses (both traditional and non-traditional media companies) to access media liability insurance coverage. Traditionally, most companies have secured coverage via their commercial general liability (CGL) policies, which cover claims arising from certain intentional torts under personal and advertising injury liability coverage.
Companies can also mitigate their exposures to media liability through strong risk management practices. With social media, for example, they should determine and implement a social media policy that defines acceptable usage, has appropriate controls in place over messaging and content, and has tried and tested takedown procedures and response mechanisms to deal with allegations.
Professional Indemnity cover
At CNA Hardy, we have a specialist team of underwriters across the UK and Continental Europe; over 20 industry specific wordings solutions; and Lloyd’s capability to write broker wordings. Our Professional Indemnity cover is tailored to meet the needs of the individual client.
Find out more about our specialist PI capabilities, core appetite and covers here.
Harry Rowe, Professional Indemnity Underwriter