Protecting Creativity: Why Brands Need Media Liability Coverage

Is your content creation strategy leaving you exposed to costly legal risks? As brands and influencers race to capture attention in today’s fast-paced digital world, copyright claims, defamation, and influencer liability are becoming major concerns. Discover how media and entertainment liability insurance can protect your business and creative projects from unexpected pitfalls.

“Content is King”—A Blessing and a Challenge

“Content is king.” Bill Gates wrote those words in 1996, predicting how people would use the internet to make money in the future. Today, content isn’t just a way to make money—it’s the cornerstone of marketing strategies for nearly every brand, corporation, small business, and entrepreneur. Companies must create and publish high-quality content to attract attention and stand out in a crowded digital space.

Collectively, the world spends 11.5 billion hours on social media platforms every day.

While content can deliver customers and revenue, it can also generate significant liability. Content that infringes on another brand’s intellectual property (IP), whether intentional or not, can lead to costly copyright infringement claims. Content can also result in claims of defamation, slander, or reputational harm.

For example, a multinational hospitality company is facing a lawsuit over the unlicensed use of music controlled by a global music company. The lawsuit alleges the hotel repeatedly used the music company’s songs in over 900 social media posts, as well as in 18 posts by paid influencers. The potential damages could total a staggering $140 million.

Content Risks Aren’t Limited to Corporations

Large corporations aren’t the only content creators at risk. A recent lawsuit between two influencers could set a precedent for content copyright claims. In 2023, two fashion influencers held a joint photo shoot. Shortly after, one influencer blocked the other on TikTok and Instagram and began posting content imitating the blocked influencer’s aesthetic style.

Cease-and-desist letters were sent, but when the defendant continued to post similar content, a federal lawsuit for copyright and trade dress infringement was filed. While the case is still pending, legal experts agree this lawsuit highlights a new risk for content creators: mimicking others’ content, intentionally or not, could result in significant legal liabilities.

Sponsored content introduces yet another risk. For instance, athletes like Tom Brady and Shaquille O’Neal were named in a class-action lawsuit tied to their promotion of the fraudulent crypto platform FTX. In 2024, after the FTX founder began his prison sentence, he agreed to help plaintiffs pursue damages from the platform’s celebrity endorsers. This case could set a new standard for influencer liability in product sponsorships and endorsements.

There are 4.7 new social media users every second.

Protection Options for Brands and Influencers

Content creation is essential to any brand’s marketing strategy, but it also introduces risks like copyright claims, plagiarism, slander, and defamation. Unfortunately, general liability policies often exclude these types of claims, leaving a significant gap in coverage for content creators. Media and entertainment professional liability insurance can bridge this gap and provide financial protection against lawsuits and settlements.

Coverage can benefit clients by:

1. Minimizing Cost and Risk: Media and entertainment liability insurance covers damages from judgments, legal defense costs, and settlements, ensuring financial protection.
2. Enabling Creativity: Knowing they’re protected, clients can focus on producing and distributing impactful content without fear of legal repercussions.
3. Adapting to Market Shifts: The media landscape is constantly evolving, with technologies like generative AI and augmented reality changing how content is created. Media liability insurance helps clients navigate these dynamic risks.

Who Needs Media Liability Insurance?

Anyone who creates and distributes content can benefit from media and entertainment professional liability insurance. This includes:

• Filmmakers and production companies
• Broadcasters and distributors
• Digital media agencies
• Influencers and brand ambassadors
• Performers
• First-party advertisers
• Any business or organization that creates original content

Even small businesses that post on social media face risks like copyright infringement, which traditional general liability policies may not cover. Media liability insurance ensures protection for content creators of all sizes.

Tips for Placing Coverage

For retail agents helping clients protect against media risks, adding value to the relationship means ensuring the best coverage and pricing possible. Here’s how:

• Investigate the Client’s Clearance Process: Insurers prefer applicants with a formal clearance process to avoid using copyrighted or licensed material. Partnering with an experienced copyright clearance law firm can make a difference.
• Work with a Knowledgeable Broker: DOXA’s experienced wholesale brokers understand the media liability insurance market and can secure the best coverage tailored to your clients’ needs.

The Bottom Line

Content may be king, but it can also be costly. General liability policies often don’t cover content-related risks like copyright claims and defamation. A media and entertainment liability insurance policy can fill this gap and protect brands, influencers, and other content creators from legal and financial exposure.

Contact DOXA today to explore tailored coverage solutions for your clients. Empower creativity while ensuring protection with media liability insurance.