Insurance 101 For Content Creators
In 2024, a content creator was sued by a company based on a product review published to YouTube. The company did not like what was said in the review, so they filed a lawsuit against the creator for defamation, claiming the company suffered significant losses due to the review.
The creator mentioned in a video that the cost of legal defense could be upwards of $200,000. Most people don’t have $200k lying around to pay defense costs. In these cases, insurance can limit the out of pocket expense, allowing creators to defend themselves while not breaking the bank.
Different types of insurance can cover things like injuries on set, damage to rented locations or equipment, and lawsuits that may arise from consulting or professional services.
Why is insurance important?
From legal disputes to cyber attacks, creators face risk in their businesses that are often not apparent from the jump. These situations can drain finances and cause mental and emotional stress. The good news is that the impact to media businesses can be reduced through proper risk management.
Risk management sounds like jargon or something a mobster would mention in a movie. Put simply, it is simply the process of analyzing various risks and creating a plan to address and minimize those risks. Part of that plan is security hygiene, part is PR preparation, and part is insurance.
Let’s cover a few of the types of insurance that can apply to content creators and their businesses.
But first, what is insurance?
At its most basic form, insurance transfers certain types of financial risk from a person or business to a 3rd party. An analogy I like to use is thinking of insurance like a backup hard drive for finances. If the primary drive fails, the data can be recovered from the backup. Insurance helps to provide a cushion of protection in the event of a legal dispute, on-set injury, or security breaches with accounts.
How does it work?
The fees paid for this risk protection are called Premiums. When people purchase insurance, they pay into a bucket of premiums along with thousands of other people. The insurer uses statistics to set prices and when something covered goes wrong, the insurance company pays claims from the bucket. The insurance company knows that not every one of their customers will experience a claim at the same time. This allows them to reduce risk for their customers while keeping the bucket funded to pay for claims.
What type of insurance do content creators need?
While there are many, many different types of insurance policies, here are a few of the types that can be used to support content businesses.
Media liability (often called media E&O)
This is a type of insurance that applies to media businesses and creators. It can address claims linked to content, like defamation, libel, slander, invasion of privacy, and some intellectual property disputes. Many of these policies cover claims up to $1M or more, depending on the policy and exclusions. The right amount of coverage depends on a creator’s reach, the type of content they create, and their individual risk tolerance.
Professional liability
This insurance typically applies to professional services businesses. However, if a creator consults, produces, or advises for companies, and a client alleges that the creator’s work caused a loss, this is the policy that can respond. It is different from media liability in that it focuses on services provided rather than content published.
General liability
Think of General Liability as insurance that covers the physical world like bodily injury and property damage. If a guest trips over a cable in the studio or there is damage caused to a rented venue, this is where General Liability comes in. While it’s good practice for most businesses to have General Liability coverage, it can be especially important for creators who travel, record in a studio, or have teams.
Cyber liability and privacy
Cyber Liability can help out with damages occurred from account takeovers, ransomware, data breaches, wire fraud, social engineering, and even deepfake-enabled scams.
Workers’ compensation
For creators with employees, each state has different requirements for workers’ compensation coverage which covers work-related injuries and wage replacement. An insurance pro and some payroll providers can help creators navigate this component.
Other Forms of Insurance
A few other pieces of insurance that may apply to content creators’ businesses are:
Business auto insurance if the company owns a vehicle
Key person insurance
Disability insurance
Product Liability covering risks associated with selling products
Endorsements
Sometimes Cyber Liability and Media Liability (or other coverages) can be added as an endorsement to an existing policy. An endorsement is an add-on that changes a policy and is sometimes the most efficient way to fill a coverage gap. For example, General Liability doesn’t typically cover Cyber Liability or Media coverage, but those protections can be added, extending the policy to cover those risks.
Quick note on endorsements. One consideration with endorsements is to check to see if the coverage is adequate to specific needs. Sometimes endorsements don’t provide the same level of coverage as a standalone policy, so it’s worth double checking.
The 80%
Work with an independent broker who understands creator businesses and can shop multiple carriers. An Independent insurance broker means they are not tied to a single insurer.
Consider audience size, contracts with brands or networks, revenue concentration, and how controversial or investigative the content may be. Talk through the business and risks with a broker who can help determine the appropriate amount and types of coverage.
Copyright, trademark, disparagement, privacy, prior acts, and contractual liability all hide in the fine print, so read the exclusions to understand what is not included in the policy. Creators who work with freelancers or have employees should also check to see how they are covered.
Turn on passkeys or app-based 2FA, use a password manager, lock down recovery options, and protect phone numbers from SIM swaps with the phone carrier’s additional PIN. These steps reduce the chances of cyber incidents and therefore claims.
The larger the creator, the higher the PR incident risk, and having a PR plan can limit backlash from responses. A PR plan covers who gets called for help if an incident occurs, how to notify partners, and what to say publicly. Time matters, and so does tone.
Buying insurance coverage will never be as fun as a new lens or a studio upgrade, but on the worst days it can be the reason the next upload still goes live.
Stay safe, stay smart, and keep creating.
Legal Disclaimer
Information presented was believed to be factual and up-to-date as of the date of writing, but no guarantee is made to its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Discussions and answers to questions do not involve the rendering of personalized investment, legal, or other professional advice, but are limited to the dissemination of general information. A professional advisor should be consulted before implementing any of the subjects presented.
Past performance is not indicative of future results, and any strategies discussed may not be suitable for your personal situation. Please consult a qualified financial professional before making any financial decisions.
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