There are more than 3 billion active social media users worldwide, and this year social media influencer marketing is projected to be worth over $14 billion, per Influencer Marketing Hub. More and more businesses are teaming up with social media influencers of varying sizes to increase their reach, the success of their campaigns, and ultimately their bottom line.
Where does insurance coverage fit into this scenario?
Risk is mitigated, legal liability is avoided, and the company’s brand is bolstered all because of this. Commercial insurance and company insurance may not protect you against legal consequences stemming from things like product liability, defamation, or actions taken on social media. The influencers on social media who you work with should have insurance against social media influencer liability to protect both their and your brands.
What is liability insurance for social media influencers?
This insurance protects the insured social media influencer or business from claims such as libel, slander, defamation of character, theft of intellectual property, plagiarism, and invasion of privacy. It protects the influencer who is not officially affiliated with the brand but is endorsing its products and services anyway. The greater the impact of social media influencers, the greater the associated reputational and financial risk.
Liability insurance for social media influencers often combines Professional Liability (E&O) and Commercial General Liability. Their insurance is meant to protect the business from claims made in third-party lawsuits. Later in the essay, we’ll delve even deeper into each of these topics. It is possible to combine other types of insurance, such as those for cyber liability, business income, commercial property, and workers’ compensation, into these packages as well.
If your organization collaborates with a social media influencer, this type of insurance coverage should be mandatory. Keep in mind that the rich are the ones that are targeted in lawsuits. To safeguard your business’s reputation in the event of a claim related to an influencer marketing campaign, verify that the influencer is adequately insured.
Who ought to be covered by social media influencer liability insurance?
One who generates income using online social networks. But it has to be more specific: Nano-influencers (1-10K followers)
- Micro-influencers (10-50K followers)
- mediators of change (50-500K followers)
- Macro-influencers (500K-1M followers)
- Mega-influencers (1-5M followers)
- veteran sportspeople
- Persons Already Known
- speaker in a podcast
- thought leaders
- individuals prominent in the news, sports, and the media
- leaders in the business world
- TV soap opera actors
- game show contestants
What is covered by a social media influencer insurance plan?
Rules have been enacted to regulate sponsored posts on social media platforms, notwithstanding their relative novelty. Consider some common sources of legal trouble:
Infringement of Copyright
The practice of using the ideas or creations of another person without permission.
For instance, it is against the law to copy any pictures or user-generated content (USG) without the creator’s agreement, even if a link is given to the creator’s website or the original social media content.
Falsely promoting a product or service on social media in the hopes that more people would use it.
Even if you don’t make any false claims about the product or service, or the company you’ve partnered with, you still may be named in a lawsuit.
For instance, a user might be lured into clicking on a clickbait scam that ultimately leads to the infection of their own device with malware.
When a person has a right to object to having their picture published on social media, that right must be respected when using photographs or videos.
Likewise, it is an invasion of privacy to make public any private information or photos.
For instance, publishing user-generated content (UGC) as “art” without the user’s knowledge or consent.
Defamation of Character or Intellectual Property
Unfairly damaging false information about a person or business is spread through the spoken or written word.
Constantly spreading false information about a brand online is one example of this.
You may still be held responsible for failing to meet the agreed-upon number of postings or content production, even if an unforeseen event prevented you from doing so.
A firm or brand’s image might take a hit if an employee violates an agreement requiring them to behave in a certain way.
For instance, one influencer missed the deadline for publishing two of the three static social media pieces they were obligated to make for the campaign.
Accidental property damage and personal property loss, such as broken cameras, phones, computers, etc., are covered here.
Consider the scenario in which your electrical devices are destroyed in an earthquake.
Which five insurance plans should every social media influencer consider?
Insurance is not a one-size-fits-all solution for the content creation industry since each provider is different. When it comes to insurance, an influencer who produces car reviews from an office full of employees will have a somewhat different set-up than one who does how-to videos in their living room.
However, the following recommendations should be considered by most social media influencers and content producers:
Accountability in the Professions
Errors and omissions insurance (E&O) is a form of professional liability insurance that protects an influencer against legal action should they be accused of making a mistake on the job. Think about a time when you’re promoting a new, hard product to your beauty-focused audience.
The recipe caused harm to the scalp, hence the product had to be recalled. The injured party may sue the creator on the grounds that they were convinced to utilize the invention. To read more about errors and omissions insurance, click here.
Cyber Risks and Data Loss
If your job requires you to use a computer or phone, you are a prime target for hackers. At this time, attacks are happening at an unprecedented rate, and our experts predict that this trend will continue.
The most sophisticated forms of cyberattack typically begin with a simple email or text message. (although some attacks can happen without the user knowing). When you get an email and decide to open an attachment or click a link, you risk having sensitive information stolen and used maliciously. You may study up on cyber liability insurance here in peace.
Commercial Default Insurance
Do you ever go to meetings? Partners, dealers, video participants, etc., might be involved in your job. During work hours, a social media influencer might be held liable for injuries caused by a third party’s slip and fall.
In the event that the firm is sued for damages to the property or injuries to third parties, the CGL coverage will provide financial protection. To learn more about CGL Insurance, please click here.
Investment Real Estate
The value of a company’s equipment, which may include cameras, PCs, printers, audio equipment, office furniture, and more, could be substantial. Whether it’s at home, at the office, or in the studio, your company’s equipment has to be safeguarded at all times. To learn more about commercial property insurance, or business property insurance, click here.
As soon as you order someone else to do anything, you take on legal responsibility for any harm that results. Business owners often have a misunderstanding about the timing of obtaining workers’ compensation insurance. Several states do not need it if you have less than three workers or no W2 employees.
Even while the state won’t punish your business, that doesn’t absolve you of responsibility for injuries sustained by your employees. If you have volunteers, part-timers, full-timers, 1099 contractors, etc., you should consider getting worker’s comp and employer liability insurance. For additional information about workers’ compensation, check out this link.
Thoughts in Concluding
If you are a social media influencer or a company looking to collaborate with an influencer, it is in your best interest to invest in comprehensive social media influencer liability insurance.
Fullsteam Insurance is an insurance provider that will provide solid coverage for your business. Helping you design and implement a social media influencer liability insurance policy that protects you when you need it most and offers maximum coverage at a fair cost is a specialty of our experienced insurance advisors.
We work together with you to tailor an insurance package that includes protection for your company’s clients, property, investors, and staff.
With Fullsteam Insurance, you’re never more than a mouse click away from speaking with an insurance expert who can help you make sense of all the insurance jargon and tailor a policy to your specific needs. Working with you and your team from start to finish, our insurance experts will review estimates, negotiate favorable terms, and access the industry’s top insurance providers.
The best part about Fullsteam Insurance is the peace of mind that comes from knowing we can expand along with your company.
If you’re looking for an insurance provider that cares about the success of your business, go no further than Fullsteam Insurance. Our mission is to provide you competitively priced insurance policies from the best insurance providers, with the broadest possible protection.
Locate a provider of social media influencer liability insurance to shield your business from legal trouble.
Emma, the founder of The Info Book, started with a passion for Sports Blogging in 2013. He has continued his passion for Blogging and desire to improve his skills and wanted to share his journey and helpful knowledge with other like-minded individuals.
He launched The Info Book as an outlet for those interested in learning more about Sports in hopes they can take what they learn and apply it for themselves!