Just released: How to raise venture capital in 2023

maintains legal compliance icon ga

Insurance for Social Media Companies

Insurance for social media companies is a type of insurance that helps to protect businesses from financial losses resulting from lawsuits, cyberattacks, and other risks. Social media companies face a variety of unique risks, such as defamation claims, copyright infringement lawsuits, and data breaches. Insurance can help to protect these companies from these risks and ensure their financial stability.

Industry Overview

The virtual social sector has grown tremendously over the past decade. Every new year introduces a novel major platform or service that generates income and feeds into the market’s growth, which grew 15.7% per year on average between 2018 and 2023. With the industry worth $90.9 billion in 2023, the stakes are high for any party involved.

Most platforms have already faced lawsuits: Meta, Snapchat, TikTok, and more. These players face legal action from consumers or competitors. For example, in December 2022, Facebook alone had to pay $725 million in settlement money. The class action lawsuit was pertinent to privacy issues, becoming increasingly common across most internet platforms. 

It’s best to remember that expanding a market increases opportunities for growth and failure. The number of pitfalls and potential problems increases by the day. So, whether you’re a seasoned contender or a new addition to the field, social media insurance will support your chances of success.

Why Is Insurance for
Social Media Companies Important?

Social Media Companies can leverage insurance to be protected against several risks, improve the efficiency of their business processes, and position themselves as credible within the industry.

fast quotes icon new
Data Breaches

Social media companies hold a vast amount of user data, including names, addresses, phone numbers, email addresses, and even credit card information. If this data is breached, it could be used for identity theft, fraud, and other crimes — but insurance helps mitigate these threats. 

dedicated support icon new
Content Liability

Social media companies are often held liable for the content that is posted on their platforms. This can include defamation, copyright infringement, and hate speech. Social media insurance can help to cover the costs of defending against content liability lawsuits.

covers data recovery icon ga
Regulatory Compliance

Social media companies are subject to a variety of regulations, including privacy laws and consumer protection laws. Social media insurance can help to cover the costs of complying with these regulations.

Market Access Icon
Business Interruption

If a social media company experiences a business interruption, such as a cyberattack or a natural disaster, it could lose revenue and customers. Social media insurance can help to cover the costs of business interruption losses.

Social Media Insurance
Coverage & Policies

These coverages form the foundation of any risk management program for social media companies:

general liability
General Liability Insurance Learn More
General Liability Insurance

This policy covers claims related to bodily injury, property damage, and personal/advertising injury. While social media companies primarily operate online, they often host events, press conferences, or have office spaces where physical accidents can occur, justifying the need for this coverage.

errors and omissions
Errors and Omissions Learn More
Errors and Omissions

This covers claims resulting from professional mistakes or omissions leading to client or third-party losses. For social media companies, where platform uptime, algorithm accuracy, and user data handling are crucial, any oversight could result in substantial damages, underscoring the importance of this insurance.

Cyber Liability Learn More
Cyber Liability

Given the massive amounts of user data managed by social media platforms, this policy, addressing losses from cyber threats like data breaches or cyberattacks, is essential. Any vulnerability or breach can have significant repercussions in terms of reputation, financial liability, and regulatory penalties.

Social Media Specific
Insurance Coverage

These policies are essential for or can be tailored to the needs of companies operating in the social media space:

Employee Health Benefits icon startup
Content Creator Insurance Learn More
Content Creator Insurance

Content Creator Insurance provides up to $5 million in coverage for a variety of risks faced by content creators, including targeted hacks, advertising exposure, publishing exposures, regulatory exposures, and crisis management costs. This type of insurance can benefit content creators in a number of ways, including financial protection, peace of mind, and credibility.


This policy handles losses related to criminal actions like fraud, embezzlement, or theft. Given the digital nature and financial transactions often involved in social media platforms, this coverage helps safeguard against internal or external malfeasance.

Cyber Insurance icon startup
Digital Asset Learn More
Digital Asset

Protecting assets such as software, user data, or digital licenses, this policy is paramount for social media companies. The digital landscape of these companies means a vast range of digital assets is in play, making insurance against their loss or compromise vital.

Social Media Insurance Costs

The total cost a company will incur is based on different factors, so each company can expect a personalized quote. The size, nature of operations, and number of employees are a few aspects that come into consideration. 

At Founder Shield, we curate your social media policy based on the potential common liability risks your specific company type may face. 

Someone who knows your business and the industry can give an accurate estimate. So, you can ask for a quote from any broker and compare it with other companies to find the best price. The deals we create at Founder Shield are at a competitive price point and provide optimal coverage.

Social Media Insurance Frequently Asked
Questions (FAQ)

The cost of insurance for social media businesses will depend on several things, including the company’s size and development stage. Other factors include:

  • Exposures: risks being insured
  • Company practices: views on safety, compliance, and risk management
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

While there isn’t a universal legal requirement for social media insurance, given the multifaceted risks social media businesses face—from data breaches to reputational damage— being insured is highly recommended. Moreover, certain contracts or partnerships might mandate specific types of insurance policy as a precondition to doing business.

The appropriate coverage for a social media company will depend on the platform’s size, the volume of user data managed, potential exposure to risks, and the nature of operations. A comprehensive risk assessment, considering factors like user base, financial transactions, and proprietary software, will help determine the desired coverage level.

To obtain social media insurance, it’s advisable to approach providers or brokers with expertise in the technology or media sectors. They will have a better understanding of the unique risks and needs of social media businesses and can guide in crafting a tailored policy.

Business liability insurance serves as a safeguard for companies, offering protection against financial losses resulting from claims of injury or property damage inflicted upon third parties, either directly by the company or as a result of its operations. This fundamental coverage ensures a company’s financial stability amidst unexpected liabilities.


Absolutely. Social media insurance policies can be tailored to address the unique risks and operational characteristics of your platform. Whether it’s adjusting coverage limits, adding specific endorsements, or having exclusions, it’s essential to collaborate with an expert to ensure the policy aligns well with your company’s profile.

Social Media Insurance Quotes

Finding social media policies doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.

Get a quote

Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional brokerages, giving us more time to be responsive and alert to your company’s needs.

Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager
Jonathan Selby, Tech & Media Lead and General Manager

Your Social Media Insurance Specialist

Jonathan spent the first five years of his professional insurance career working as a generalist broker at a traditional firm on Long Island. Intrigued by how to leverage technology in the industry, he joined the Founder Shield team in 2016 and quickly grew into his current leadership role of General Manager. Jonathan works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world. Outside of work, he can be found on the basketball court and chess board — but not at the same time.

Why Choose Founder Shield?

Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for Media companies, offering numerous benefits and advantages over traditional brokers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:

Benefits of Choosing Founder Shield:
system failures icon
Industry Expertise

Founder Shield is focused on protecting rapidly evolving Media startups. We ensure that our products are tailored to meet the unique needs of social media corporations.

Customized Solutions

Founder Shield offers bespoke policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with social media operations.

fast quotes icon new
Fast Quotes

With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your social media insurance quickly, allowing you to make informed decisions fast.

industry expertise icon new
Ease of Use

Founder Shield’s user-friendly digital platform makes it easy to manage your policy, submit claims, and access important documents whenever you need them.

dedicated support icon new
Dedicated Support

Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance policy.

Scalable Coverage

As your Media business grows, Founder Shield’s policies can grow with you, ensuring you always have the right level of coverage for your changing needs.

Founder Shield is a preferred choice for social media businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.