Social media has become an important part of building brand authority and driving sales. Social media influencer insurance is coverage that protects the content creators who drive those results. The primary coverages to consider are professional liability ($750 annually for social media insurance) and general liability (around $350 annually).
Depending on the size of your operation or even studio, a few other coverages are worth checking out, too. While it may not seem like you need protection, insurance for content creators is important because if a product review, post, or endorsement goes wrong, a company may come after you for libel.
Who Needs Content Creator Insurance
Social media influencer insurance is for anyone pursuing being an influencer as a career. Some people fall into it; others pursue it with intention. But regardless of how you got there, if you promote products and trends, you should consider purchasing insurance. Groups or individuals who need content creator insurance include the following:
- YouTubers
- Podcast hosts
- Bloggers
- TikTokers
- Social media personalities
- Instagram stars
Basically, if you are on social media, have a sizable following, or have companies reaching out to you about sponsorships, you need to look into insurance for social media influencers.
Being insured is a bonus for any business when it comes to making it more attractive to potential clients. If a major brand is interested in hiring you for a sponsorship and you tell them you have insurance, it demonstrates you take your position as an influencer seriously.
Social Media Influencer Insurance: What It Is & Types
Content creator insurance is a policy or several policies that protect social media influencers. The protection is primarily in the area of charges of negligence that lead to the potential of a lawsuit. Such was the case for the 2022 FTX campaign.
Social media influencer insurance doesn’t have to be liability-only coverage. It can also cover expensive equipment or workers’ compensation for employees. These are the several types of insurance a social media influencer needs to consider.
This is likely the most important policy for a person who works as an influencer. Professional liability is a special liability that protects you from intangibles like mistakes, bad advice, and failing to deliver on a contract. This type of insurance is also known as errors and omissions (E&O) insurance.
For example, you promote a type of skin cream, promising it will make someone look younger. However, after watching your video and trying the cream out, a viewer has the reverse experience, and their skin becomes cracked and worse than before. In this situation, you may need to file a professional liability claim.
Another example is when a brand hires you to promote its skin cream, but you fail to meet the contract’s obligations. Instead of mentioning the product twice a week, you talk about it only once in two months. This is another instance wherein you may benefit from your E&O insurance.
General liability is a more common type of liability insurance and, really, is more applicable to businesses that have direct, physical interaction with customers. However, general liability comes with a type of protection that is specifically important for influencers: personal and advertising injury.
This area within the general liability policy addresses allegations that your business slandered another company or caused harm. Let’s say you filmed a TikTok about how bad your experience was at a local restaurant.
The video went viral, and restaurant sales plummeted until the owners considered closing down the business. A few months after uploading the video, you’re notified that the restaurant has filed a lawsuit against you for slander. Filing a claim under your general liability policy is where you would turn for help.
Your business may consist of the newest phone, or it could be something much more expensive. Inland marine is a type of commercial property insurance where you can cover specific items. The advantage of inland marine insurance, and the reason an influencer should consider it, is that the coverage follows the item and isn’t limited to a specific location.
If you travel or go on-site for videos and bring equipment to film, capture sound, and even set up lighting, inland marine insurance is the type of commercial property coverage you should look into.
Some of my favorite shows are on YouTube, and that’s the world we live in now. In some of those shows, I can name at least two off-camera personnel because the host interacts with them so much. The point? Many influencers have a big enough operation to have employees, thus, a need for workers’ compensation insurance.
Workers’ comp is required in every state except Texas and South Dakota. The threshold for when it is required changes by state. For example, in California, if you have one employee, you must provide workers’ comp even if that one employee works for you part-time. Influencers who have employees will want to make sure their business complies with state workers’ comp laws.
This coverage may only be something a more successful influencer should consider. Odds are you’re not keeping important information related to clients or payment processing. However, cyber liability can also help with ransomware and data leaks.
For example, if you’re worried about being locked out of your accounts, then cyber liability is worth considering. It can help with the cost of dealing with the fallout from a data leak or assist with ransomware attacks.
Social Influencer Insurance Costs
Getting a quote online for social media insurance may be tricky. If you can’t find one online, reach out to your local agent or another small business insurance company directly to discuss your career’s insurance needs and get a quote.
Type of Insurance | Estimated Monthly Premium |
|---|---|
General Liability | $21-$30 |
Professional Liability | $47-$63 |
When determining premiums, insurance companies will usually rely on some standard data sets. These can include information and questions like the following:
- When did you start your business?
- How many employees do you have?
- Where is your business located?
- What is your estimated annual revenue?
- Have you had any claims in the past five years?
For social media insurance, you should be prepared to answer some specific questions about contracts and legal review of contracts. Another important consideration for insurance companies is what procedures you have in place to ensure you are not violating any copyright laws.
If you share a picture or play music during a video without permission, you could end up in trouble with the owner of that contract. Likewise, insurance companies want to ensure that you have operating procedures in place to minimize the risk of slander and libel charges.
The Case for Content Creator Insurance: An Untrustworthy Endorsement
During the 2022 Super Bowl, FTX did an advertising blitz featuring numerous celebrities endorsing its products, such as Larry David and Tom Brady. Unfortunately, not too long after that, FTX went bankrupt. A class action lawsuit was filed, not only against FTX but also against the celebrities who endorsed it.
The thought process behind the lawsuit against the celebrity endorsements is that they gave their credibility to the exchange, so they’re liable for the investment decisions people make when buying into it.
As a social media influencer, when you choose to endorse a product or promote a service, you are giving it credibility based on the trust those tens of thousands of followers have placed in your opinion. If you’re wrong—even if you are uninformed and say you didn’t know FTX was about to go belly-up—you could still be charged with negligence. That’s why social media influencer insurance is so important.
Bottom Line
The next time you hit a record to show the world your latest take on the portion sizes at that local restaurant chain, you should ask yourself, “Do I have insurance?” If the answer is no, you may want to hold off on making that video until you know you are covered and will receive help in the investigation and defense of any sort of allegations. Social media influencer insurance is a simple way to make sure your name is trending for all the right reasons.
