Media

What does it cover?

Media Liability Insurance protects you against claims arising out of the gathering and communication of information. This coverage provides very valuable coverage against defamation and invasion of privacy claims as well as copyright and/or trademark infringement.

Cost and applications:

• Premiums start at $2,000.
• Deductibles start at $2,500.
• Limits are available from $500,000/$500,000 to $10,000,000.
• Please click on the appropriate application.

               a. Advertisers

                b. Advertising Agency

                c. Broadcasters

                d. Media

                e. Music

                f.  Newspapers

                g. Publishers

Claim Scenarios

NOTE: The claims scenarios summarized are offered only as examples. The examples are not intended to establish any standards of care or to serve as legal advice appropriate for any particular factual situations. Coverage depends on the actual facts of each case and the terms, conditions and exclusions of each individual policy.

1. Research, production and broadcast of a news story indicated that a private pilot did not have the appropriate certifications to fly the type of plane in question. Had the interview and research been conducted properly, the pilot would have been able to produce the certifications in question. The pilot sued for defamation.

Outcome - Defense costs exceeded $600,000; the case ultimately settled for $1,250,000.

2. A candy bar distributor asked their marketing firm to develop a promotional contest to increase sales. The marketing firm created a contest designed to be incorporated in the product packaging. Consumers could win various prizes, if, on the inside of the candy wrapper the word “WINNER” appeared. Unfortunately, by looking closely at the wrapper, consumers could read the word “WINNER” prior to buying the candy bar. Because of this, sales of the candy bar increased minimally, yet the cost of the promotion was higher than anticipated. The buyers were buying only “winning candy bars” and leaving candy bars without the “WINNER” wrapper on the store shelves. Once the problem was discovered, the distributor had to decide whether to proceed with the contest or stop the contest and earn the ill will of their customers.

Outcome - The candy bar distributor sued the marketing firm for $6.5 mil. for damage to the distributor's reputation, as well as the difference between the anticipated increase in sales from the contest and the actual increase in sales generated by the contest.

3. A commercial printer was hired to print holiday catalogs for a customer. Because of the catalog’s seasonality, meeting the customer's deadline was critical in order to assure the catalogs were mailed in time for the holiday shopping rush. Once the catalogs were printed, the customer contracted with a separate mailing house to handle the actual mailing. Unfortunately, incorrect prices were mistakenly included in the catalogs during the printing process, and the mistake was not noticed until the mailing house had completed their work and the catalogs were ready to mail. The catalogs had to be re-printed, which caused a delay in mailing that allegedly resulted in significant lost sales. Along with the lost sales, the customer had to pay the mailing house for their services performed prior to discovery of the mistake.

Outcome - The customer sued the commercial printer for total damages of $900,000.

Optional coverage enhancements (but not limited to):

• Occurrence and Claims Made forms available.
• Defense Expenses Outside the Limits of Liability.
• Punitive Damages where Insurable by Law.
• Independent Contractor Coverage.

Examples of who buys:

• Advertising Industries.
• Publishers and Broadcasters.
• Researching, exhibition and material distribution services.
• Electronic publishing services engaged in preparing materials for publication and republication.
• Any company that creates publishes or distributes material in any format, online or off, is at risk.