“Content is king.” Bill Gates wrote those words in 1996 in an article predicting how people would use the internet to make money in the future.¹ Today, content isn’t just a way to make money. It’s a critical marketing cornerstone for nearly every brand, corporation, small business, and entrepreneur. Companies must create and publish high-quality content that attracts attention and cuts through the noise.

While content can deliver customers and revenue, it can also generate significant liability. Content that copies another brand’s intellectual property (IP), whether intentional or not, can create exposure to copyright infringement claims. Content can also lead to claims of defamation, slander, or reputational harm.

For example, a large multinational hospitality company is facing a lawsuit over the unlicensed use of music controlled by a global music company. The lawsuit alleges that the hotel repeatedly used the music company’s songs in over 900 social media posts and in another 18 posts by paid influencers. The outcome could be a staggering $140 million in damages.²

Large corporations aren’t the only content creators at risk. A lawsuit between two influencers could set a new precedent for content copyright claims. Two fashion influencers held a joint photo shoot in 2023. Shortly after the shoot, one allegedly blocked the other influencer on TikTok and Instagram before posting content imitating the blocked influencer’s aesthetic style.³

The offended influencer’s legal team sent cease-and-desist letters. However, when the defendant continued to post imitating content, a federal lawsuit for copyright and trade dress infringement was filed. It remains to be seen if the lawsuit will succeed, but legal experts agree that it points to a new potential risk for content creators. Imitating others’ content, intentionally or not, could result in financial and legal liabilities.³

Paid and sponsored content presents yet another risk for influencers and content creators. Tom Brady, Shaquille O’Neal, Shohei Otani, and other celebrities were included in a class-action lawsuit filed on behalf of customers of the fraudulent crypto platform FTX due to their paid promotion of the platform. The CEO and founder of FTX was sentenced to 25 years in prison for his role in FTX’s collapse.⁴ In April 2024, after beginning his prison sentence, he agreed to help the plaintiffs pursue damages from FTX’s celebrity endorsers. This means that athletes like Brady and O’Neal face liability for endorsing FTX in commercials, social posts, and even sponsored posts on their own personal social media pages. The lawsuit could set a standard for liability for influencers who sponsor products and brands.⁴

PROTECTION OPTIONS FOR BRANDS AND INFLUENCERS

Content creation is critical for nearly every brand’s marketing strategy. However, every time a brand produces new content, it also creates potential new liability exposure to copyright claims, plagiarism, slander, defamation, and more.

General liability policies often don’t cover these claims, creating a gap for anyone who regularly produces content. Media and entertainment professional liability insurance can help bridge the gap for content creators and provide financial protection against judgments for things like copyright claims, false advertising, and defamation. Coverage helps clients by:

Minimizing cost and risk in a content-driven world. Whenever a business, organization, or individual creates content, they expose themselves to potential risk and loss. Media and entertainment liability insurance covers damages for judgments, legal defense costs, and settlements.

Enabling creativity. Insurance provides the protection and peace of mind needed so clients can focus on what matters most - producing and distributing the best content possible.

Helping navigate unpredictable market shifts. The media market changes constantly. Today, generative AI is upending the content creation process. New technology like augmented reality will bring even more drastic changes in the near future. Media and entertainment liability insurance helps clients stay ahead of constantly changing risks.

Who can benefit from media and entertainment professional liability insurance? Simply put, anyone who creates and distributes content, including:

• Filmmakers and production companies
• Broadcasters and distributors
• Digital media agencies
• Influencers and brand ambassadors
• Performers
• First-party advertisers
• Any business or organization that creates original content

While it may seem like media and entertainment insurance is only for those in the media business, it provides valuable protection for anyone who creates content. Even small businesses that make social media content could face risks like copyright infringement, and a traditional general liability policy may not cover those claims.

TIPS FOR PLACING COVERAGE

Retail agents working to protect their clients against media and content risk can add value to the relationship by undertaking due diligence before the application process begins to ensure the most favorable coverage and pricing possible.

Investigate the client’s clearance process. Insurers want to see that an applicant has a formal clearance process to avoid using copyrighted or licensed material. The applicant should work with an experienced and reputable copyright clearance law firm. Applicants that do not have a clearance process may face challenges in obtaining coverage.

Work with a knowledgeable broker. A wholesale broker with knowledge of and experience in the media and entertainment liability insurance market can make a difference in the scope and quality of coverage obtained. CRC works with a wide range of carriers who offer coverage for content creation risks.

BOTTOM LINE

Content may be king, but it can also be costly. General liability policies often don’t cover content-related risks like copyright claims and defamation. A media and entertainment liability insurance policy can fill the gap and protect media companies, advertisers, influencers, and other content creators from risk and expense. Contact your CRC Group producer today to find the right coverage for your clients.

CONTRIBUTOR

• Mario Romero is a Professional Lines Broker with CRC Group’s Los Angeles, CA office specializing in the Media and Entertainment industries.

END NOTES

1. Content is dead, long live content, Newsweek, March 17, 2023. 
2. Sony Music sues Marriott Hotels for alleged ‘rampant’ copyright infringement in social media posts, Music Business Worldwide, May 22, 2024. 
3. Influencer Style Case Risks More Stolen Vibe Suits From Creators, Bloomberg Law, July 10, 2024.
4. Sam Bankman-Fried Agrees to Help FTX Investors Go After Celeb Promoters, CoinDesk, April 22, 2024. 
5. State of Video in 2024: Video Marketing Statistics & Insights from Wistia, Hubspot, September 3, 2024. 
6. Social Media Statistics Details, The University of Maine.