According to Influencer Marketing Hub, there are more than 3 billion social media users globally, and this year alone, social media influencer marketing is expected to be worth over $14 billion. As this trend gains traction, more and more companies are forming alliances with micro to mega-influencers on social media to spread brand awareness, create campaigns, and eventually boost sales.
Where does insurance coverage fit into this scenario?
Simply said, it reduces risk, shields your company from legal action, and supports the upkeep of your reputation. Product-related liability, defamation, or social media activities could not be covered by your typical commercial insurance or company insurance policy. To protect both their brand and yours, the social media influencers you choose to deal with should have a social media influencer liability insurance coverage in place.
What is liability insurance for social media influencers?
The social media influencer or company is shielded by this insurance coverage against any prospective legal actions, including those involving libel, slander, defamation of character, theft of intellectual property, plagiarism, or even invasion of privacy. It covers the influencer who does not have a direct contract with the company but is pushing the brand’s services or goods. The reputational and financial risk increases along with the importance of social media influencers.
Professional Liability (E&O) and Commercial General Liability are frequently combined into one liability insurance policy for social media influencers. their policies are essentially designed to safeguard the company in the event of a claim resulting from third-party litigation. We go into more depth about each of them later in this article. Additional necessary coverage, such as cyber liability, business income, business property, and workers’ compensation insurance, may be bundled with these plans.
This kind of insurance coverage ought to be necessary if your company works with a social media influencer. The wealthy are always the ones that are sued first, so keep that in mind. Make sure the influencer advertising your company has the necessary insurance coverage in place to protect your brand in the event that a claim stems from the influencer campaign.
Who ought to be covered by social media influencer liability insurance?
Somebody who makes money via social media platforms. However, it ought to be more precise: Nano-influencers (1-10K followers)
- Micro-influencers (10-50K followers)
- intermediate influencers (50-500K followers)
- Macro-influencers (500K-1M followers)
- Mega-influencers (1-5M followers)
- YouTubers
- Celebrities
- seasoned athletes
- Known individuals
- Bloggers
- Vloggers
- host of podcasts
- opinion leaders
- Politicians
- personalities from the media, sports, and news
- Academics
- major business figures
- Authors
- Artists
- Photographers
- DJ’s
- Commentators
- telenovela stars
- competitors on game shows
- Activists
What is covered by a social media influencer insurance plan?
Despite the fact that social media influencers are relatively new, rules are already being passed to control promotional content on these sites. Let’s examine some typical liability risks:
Copyright Violations
The unauthorized use of another person’s creative works or intellectual property in your material.
For instance, duplicating any photos or user-generated material (USG) without the creator’s consent is illegal regardless of whether a link to the creator’s website or original social media content is included.
Financial Crime
Making an untrue claim about a good or service and then having someone credit your social media activity as the reason they utilized it.
Please be aware that you may be named in a lawsuit even if you don’t make any fraudulent statements about the item or service or the business you have partnered with.
For instance, a clickbait scam might entice a user with a call to action that can infect the user’s personal device with a virus.
Breach of privacy
The usage of images or videos when a person has the right to object to having their image broadcast on social media.
Invasion of privacy also includes publishing personal information or photographs in public.
For instance, using user-generated material (UGC) without the user’s permission and releasing it as “art” for an exhibition.
Slander or Libel Against a Brand or Person
False information about a person or company that unfairly undermines their reputation is communicated verbally or in writing.
For instance, claiming constantly on social media that a brand is dishonest and corrupt when it isn’t.
Failure to Perform Under a Contract
Even if a circumstance beyond your control is the reason you didn’t fulfill the agreed-upon quantity of posts or content production, you risk being held liable.
If you break a contract where you are expected to perform or not act in a specific way, it hurts the reputation of the company or brand.
For instance, despite being required under their contract to create three static social media posts for the campaign, an influencer only managed to publish one before the deadline.
Real Estate Damage
Both unintentional damage to property and damage to your own personal property, such as cameras, phones, laptops, etc., are included under this.
Take the loss of your electronic equipment as a result of an earthquake, for instance.
Which five insurance plans should every social media influencer consider?
Because every content producer is unique, insurance is not a one-size-fits-all product. An automobile review influencer with numerous staff and offices will have a slightly different insurance portfolio than an influencer who does explanation videos from their flat.
However, most social media influencers and content producers should take into account the following guidelines:
Professional Responsibility
This type of professional liability sometimes referred to as errors and omissions insurance or simply E&O shields an influencer from legal action if they are accused of making a mistake on the job. Consider the scenario when you provide beauty material and urge your audience to try a novel hard product. It turns out that the hair product was recalled because of scalp damage caused by the formulation. The damaged party could sue the inventor, claiming that they were persuaded to use it by them. Visit this link to learn more about E&O coverage.
Data Breach & Cyber Liability
You are vulnerable to cyber assaults if you ever use a computer or phone for work. Attacks are occurring at an incredible rate right now, and according to our analysts, they will continue to do so. The finest cyber assault example often occurs within an email or text message. (although some attacks can happen without the user knowing). Data including financial, personal, employment, and customer information can be taken and used against you if you open an attachment, click a link, or get an email. Here is a safe place where you may learn more about cyber liability insurance.
Business General Liability
Are there any meetings you attend? You might work with partners, dealers, video participants, etc. A social media influencer can be responsible for harm if a third party trips and falls during regular business hours. A Commercial General Liability (CGL) coverage safeguards the company in the event that it is sued for third-party property damage and bodily injury claims. Visit this page to find out more about Commercial General Liability.
Commercial Property
When all the business’s property is taken into account, cameras, computers, printers, audio, furniture, and other items might have a large worth. Protect all of your company equipment while it is in storage at your house, place of business, or studio, as well as when it is traveling. Visit this link to find out more about business property insurance or commercial property insurance.
Employee Compensation
You become responsible for their injuries as soon as you direct another person’s actions. When considering when to get workers’ compensation insurance, company owners frequently have a misperception. If you have less than three employees or no W2 employees, several states do not mandate it. That doesn’t mean your company is not accountable for employee injuries; it just means the state won’t sanction you. You should think about worker’s compensation and employer liability coverage if you have volunteers, part-time employees, full-time employees, 1099 contractors, etc. Visit this page to learn more about workers’ compensation.
Final Reflections
Make sure your brand has a strong social media influencer liability insurance coverage that will save you time and money against all liabilities if you are a social media influencer or a business wanting to work with a social media influencer.
The insurance agency Fullsteam Insurance will protect your company with a reliable insurance plan. Allow our staff of knowledgeable insurance consultants to assist you in creating and putting into effect a social media influencer liability insurance policy that will safeguard you when you need it most and provides the greatest coverage at a reasonable cost.
We collaborate closely with you to create a unique insurance plan that covers your business’s customers, assets, partners, employees, and other factors.
With Fullsteam Insurance, interacting with an insurance adviser who can cut through the corporate speak and create an insurance plan just for you is always just one click away. Our insurance specialists examine estimates, negotiate the best terms, and have access to the most renowned insurance carriers as they work with you and your team every step of the way.
The nicest thing about Fullsteam Insurance is knowing you can relax and be certain that we can grow with your business.
Fullsteam Insurance strives to help your company succeed by providing top-notch customer service, cutting-edge technology, and sector expertise. Our aim is to provide you with insurance policy options from the finest insurance companies, with the most comprehensive coverage, at a reasonable price.
Find out where to get specialized social media influencer liability insurance that can protect your company from liability.
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