Media Liability Insurance

If your online activities are not covered under your current insurance policies, a growing number of companies are offering media liability insurance. While these policies are expensive -- perhaps prohibitively so for a newly formed business -- they can also be quite comprehensive. They typically cover costs to defend against suits brought for:

• libel, slander and defamation.
• invasion of privacy (a growing concern, as suits arising from newsgathering activities are not hampered by the First Amendment concerns that make libel and slander suits difficult to win).
• copyright infringement and other intellectual property-related suits.
• damages resulting from errors, omissions, misstatements or misleading statements made by you.

Media liability policies typically have a minimum coverage of $1 million and can run all the way up to $100 million for large publishers. The premiums may be as low as $1,500 a month, but typically begin at $2,500. Media liability insurance is a growing business with more companies underwriting policies every year, so it makes sense to shop around. Some carriers that provide policies in this area include: American International Group, Chubb Group, Media/Professional Insurance, First Media Specialists, ACE USA,OneBeacon Insurance Group, and AXIS Capital U.S. Insurance. Keep in mind that you will likely have to go through a licensed agent or broker to secure coverage from these companies.

There are several things to consider when shopping for a media liability policy:

• International Coverage: Increasingly, traditional and non-traditional journalists are finding themselves sued abroad in jurisdictions more favorable to plaintiffs than the United States. If you are likely to touch on foreign issues or discuss foreign citizens in any way, you might want to ensure that your policy covers you for suits brought overseas.

• Settlement: Many insurance policies include "hammer" clauses, which specify that the insurer, rather than you, gets to decide whether to accept a settlement (at the penalty of losing or drastically reducing coverage if you don't acquiesce). Because insurers are worried about their economic bottom line rather than your reputation (or good journalism, for that matter), you and your insurance company may not agree on when is a good time to settle a lawsuit. Insurance companies sometimes include clauses giving them a say in whether or not you will print a retraction (something that can limit liability or damages in many states -- please see the Overview of Retractions section of this guide for more information).

• Punitive Damages: Some policies cover punitive damages and some do not. While actual awards of punitive damages against citizen journalists are likely to be relatively rare, this coverage may provide you with peace of mind and also enable you to fight rather than settle suits you believe are meritless.

• Coverage Period: Some policies cover you for any claim filed against you during the policy period; others, for any claim brought against you for an incident that occurred during the policy period. The latter gives you more insurance should you discontinue your site, terminate your policy, and subsequently find yourself embroiled in a lawsuit.

• Policy Limits: All policies will pay attorney's fees, but some deduct defense costs from policy limits and some do not. Because such fees can be significant, this may make a large difference in the actual coverage of your policy.

• Counsel: Some policies allow you to select your own lawyer, while others do not.

• Financial Security: It is important to make sure your policy is underwritten by a company that is financially secure.

• Lawyer's Opinion: Some insurers require that you hire a lawyer to assess your chances of being sued and write an opinion letter to the insurer before it will underwrite a policy. The costs of this can be quite substantial.