Insurance for Media and Advertising Companies

The larger-scale companies operate with a higher risk, but everyone in the media and advertising spaces takes on risk. The most obvious would be what the insurance industry appropriately calls “media liability.” This is a type of professional liability coverage that protects companies from suits claiming their content defamed or infringed on the intellectual property of a third party.

Advertising liability coverage works similarly but protects the company from liability related to their own advertising. Together, media and advertising liability coverages provide a more comprehensive safeguard against liability that arises from media operations.

Unique exposures exist for each type of company under the “media and advertising” umbrella. A news company would want to have a policy that provides protection when the government tries to compel them to reveal a confidential source or when they have to defend their first amendment rights. The insurance industry has reacted to that and created bespoke policies.

The right tech and media professional liability would protect a company from, for instance, liability from a bug in their system causing an erroneous order being placed on their client’s behalf for ad space.

On the technical front, service outages can come from all directions. Anything from routine system maintenance to targeted DDoS or cyber extortion attacks can trigger a business interruption. If an advertiser can’t do their job or a social media network has to shut down, they’ll have to pay the price in the form of lost income or, worse, lawsuits.