Must-have insurance for digital-age brands, influencers

No. 1: Protection against legal claims

In the influencer world, originality is currency. But what happens when someone alleges that your content infringes on their intellectual property? Media E&O coverage steps in to protect influencers from costly legal claims like copyright infringement and trade dress violations. Without it, even the most successful influencers could face crippling financial and reputational damage.
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No. 2: Ensuring brand-influencer alignment

For brands, hiring an influencer isn't just about reaching an audience; it's about aligning values and reputations. Media policies should explicitly include influencers, whether paid or unpaid, to avoid gaps in coverage. Without clear, comprehensive policies, brands expose themselves to risks when influencers use copyrighted materials without permission.
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No. 3: Navigating indemnification and warranties

A common pitfall for influencers is not fully understanding the indemnities and warranties they agree to when collaborating with brands. A misstep, like using unlicensed music or imagery, can leave influencers solely responsible for legal claims. Influencers of all sizes need to approach their work like a business, investing in legal advice and risk management strategies — including insurance — to mitigate these risks.
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No. 4: Mitigating the costs of legal defense

Legal disputes can be prohibitively expensive, even when the claims lack merit. Media E&O coverage provides crucial financial support, covering legal defense costs and potential settlements. For influencers and brands alike, this coverage can mean the difference between a minor legal hiccup and a major financial setback.
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No. 5: Beyond E&O: Exploring additional coverage options

While media E&O is a powerful tool, it is not the only line of defense. Intellectual Property (IP) coverage offers broader protection, including both offensive and defensive strategies. This coverage not only protects against claims of infringement, but also empowers influencers and brands to enforce their own IP rights, safeguarding the unique content they produce.
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In today’s digital landscape, influencers are more than just trendsetters; they are powerful brand ambassadors who shape consumer perceptions worldwide.

However, with great influence comes the potential for significant legal risk. Consider the recent lawsuit filed by influencer Sydney Nicole Gifford against fellow influencer Alyssa Sheil for alleged copyright infringement and trade dress violations. The case is a stark reminder of the legal complexities that come with the territory.

As influencers increasingly operate like businesses, the need for media errors & omissions (E&O) coverage has never been greater. Let’s explore why this insurance is not just an option but a necessity for both influencers and the brands they represent.

Case Overview: Gifford v. Sheil

Sydney Nicole Gifford’s lawsuit against Alyssa Sheil highlights the often murky waters of intellectual property rights in the influencer industry. As indicated in the complaint, Gifford alleges that Sheil has been copying her content, creating a similar aesthetic, and producing nearly identical videos. This case underscores the urgent need for influencers to protect their creative work and for brands to safeguard their collaborations against potential legal disputes.

The slideshow above illustrates why media E&O coverage is essential for today’s influencers and brands.

Lessons from Sony Music v. Marriott

A cautionary tale in the realm of media coverage is the lawsuit filed by Sony Music against Marriott alleging improper use of licensed music. Out of the 900 alleged infringements, 18 were committed by influencers promoting Marriott. This case is a critical reminder: Brands must ensure their media policies extend to influencers, and influencers need their own robust coverage to protect against such claims.

Protecting your brand in the influencer era

The influencer space is rapidly evolving, and with it, the risks associated with content creation. Media E&O coverage serves as a vital shield for both influencers and brands, protecting them from the legal pitfalls that can arise in the dynamic world of social media. By viewing their online presence as a business, influencers can better navigate these challenges with the support of legal and insurance advisors. Similarly, brands must be diligent in ensuring media policies extend to all influencers and brand partnerships.

Secure your digital presence

For influencers and brands navigating the complexities of media coverage, it’s crucial to take proactive steps. Review your current insurance policies, consult with legal experts, and consider additional coverages like IP insurance to fully protect your creative assets. In the fast-paced digital landscape, preparation and protection are key to thriving without unnecessary risk.

Katie Pope, Esq. ([email protected]) is vice president of Executive Lines at The Liberty Company Insurance Brokers.

See also:

• The power of influence: Social media risk landscape
• Protecting your social media income through insurance
• Looking behind the curtain: Social media evidence and ethical discovery