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Technology Insurance
Loss Scenarios for IT Firms
  Jury award for compensatory damages.
When a software solutions provider fails to live up to performance commitments made via a contract for a new software system, a local jury awards the plaintiff in excess of $2 million in compensatory damages.
Indemnity Paid: $2,400,000
Defense Cost Paid: $345,000

History of Media Liability Insurance


Media Liability Insurance was originated in the United States in 1930 by the Employers' Reinsurance Corporation. There was a perceived need, especially with respect to newspapers at the time, for protection for alleged libel and slander claims.

Currently, expanded media liability policies, geared to the needs of growing numbers of firms with communication exposures, are carefully underwritten by a substantial group of insurers.


Eligibility for Media Liability Insurance

The claim and courtroom experience of those in the broad fields of advertising, broadcasting and publishing emphatically demonstrated the need by growing numbers of businesses and certain individuals for Media Liability Insurance. Notable among these are advertising agencies, advertisers, authors, book publishers, cable television operators, magazine publishers, multimedia organizations, newspaper publishers, printers, radio stations, television stations, electronic publishers and miscellaneous communications related firms.

The Internet revolution has brought a new industry in the form of consultants who do everything from the design of a website to actually being the provider of the Internet service gateway. For new media companies and tech companies, there exist new liability exposures. When designing a Website for a client, these new exposures may include libel, slander, media liability, advertising liability, and security issues. Security liability can arise from misuse of Email to credit card fraud. Further complicating the issue is the fact that both the web developer consultant and the client face exposures from outsiders accessing the Website. This is in addition to the traditional liability facing the consultant for duties owed the client.


Copyright Infringement definition

Copyright Infringement definition is Where a party uses the work of another without its express written permission, authorization or consent, that party may violate Section 501 of the United States Copyright, Title 17 of the United States Code. Act by infringing on the rights afforded to ADM under Sections 106(1), 106(2) and 106(3) of the Statute.

Copyright Infringement can for example be Unlicensed or unauthorized copying of copyrighted materials or proprietary software.


Media Liability Insurance


What is Media Liability Insurance?

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

Media Liability Insurance can be categorized as Errors and omissions in the written or spoken word resulting in claims alleging financial loss as a consequence. Media Liability Insurance can also be called Communications Liability Insurance and can be synonymous with Multi Media Liability insurance

Coverage can include:

  • Defamation: which arises from false information that is communicated to others and damages a person's reputation or business. Allegations made in lawsuits include libel, meaning defamation in print or by broadcast; slander, defamation by way of oral communication; and trade libel, which means print or broadcast defamation of a business or a product.
  • Product defamation: the demeaning of performance or value of a product.
  • Personal disparagement: which involves damage to community or business activities as a result of a publication or broadcast.
  • Invasion or infringement: of or interference with the right of privacy or publicity including intrusion, public disclosure of private facts, unwarranted or wrongful publicity, false light, or the use of name or likeness for profit. Invasion of privacy laws vary widely from state to state, and the law often is unclear within a given state.

When do I need Media Liability Insurance?

Any company that distributes information to the public via a web site or other means of communication (desktop publishing, email) now faces the exposures of a traditional publisher.

  • Publishers and broadcasters of instructional material
  • Trademark infringement, personal injury liability or unfair competition claims
  • Electronic transmission
  • Researching, exhibition, serialization and material distribution services
  • Electronic publishing services and any other entity engaged in preparing materials for publication and republication
  • Television and radio stations, motion picture companies, cable and satellite broadcasters
  • Advertising Industries

Why do I need Media Liability Insurance?

Although new media and other publishers worry about claims like libel and copyright infringement, attorneys and insurers have seen a dramatic rise in the last few years in the number and severity of claims for Media Liability errors and omissions. Unlike traditional claims involving allegations of libel, copyright infringement, invasion of privacy, piracy and plagiarism, Media Liability errors and omissions claims seek to impose liability on the publisher for physical injuries or economic loss allegedly caused by some error or negligent publication in the ideas or expressions contained in the published material.

Often, a claim or lawsuit may not involve a clear error or omission. For example, a client is not happy with the result and brings a claim to obtain a different result or avoid paying a fee. Media Liability Insurance typically pays for the cost of defending this type of claim.

To help protect your company, InsureCast offers Media Liability Insurance coverage. Please go to our online CoverageCoach questionnaire to get a free no obligation Media Liability Insurance quote.

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