Media liability coverage in a cyber insurance policy is an insuring clause that protects an organization against loss from claims arising from the content it creates, publishes, or distributes.
As organizations move more of their communications and operations online, media liability becomes a bigger risk for everyone. This article explores media liability risk and the insurance available to protect against financial loss from such claims.
What is Media Liability?
Media Liability is the legal risk an organization faces when it creates and distributes content; whether through digital platforms like websites and social media, or traditional formats such as print, television, and radio. That risk is the potential obligation for the organization to compensate others for harm caused by that content. Different types of media are not inherently harmful themselves, but they are capable of causing issues based on what is shared. Any organization that publishes or shares content, even a single blog post or social media image, can face legal exposure.
When we think of content creation and the potential risks associated with these activities, we immediately think of the intellectual property exposures such as copyright or trademark infringement. There are also many other risks. Media liability may arise from:
- defamation, libel, slander, product disparagement;
- violations of the right of privacy, such as false light and intrusion upon seclusion;
- invasion of an individual’s right of publicity;
- plagiarism;
- improper deep-linking;
- false arrest; and the
- invasion of the right to private occupancy such as trespassing or wrongful eviction.
Understanding the variety of liability sources helps organizations assess risk and ensure their insurance coverage addresses the full spectrum of potential claims.
Do you know what coverage is available on a cyber policy, in addition to media liability?
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Media Liability coverage on a cyber policy
Some cyber insurance policies include a basic level of media liability coverage within the standard policy wording, alongside data breach, business interruption, and cyber extortion protections. Media liability coverage on a cyber policy usually focuses on digital content only, excluding print media unless specifically endorsed. The coverage typically appears on the policy with the insuring agreements under terms such as “Multimedia Liability” or “Media Content Liability.” While the coverage is generally more limited than a standalone policy, it’s often sufficient for businesses with basic publishing exposure. Exclusions can include print content, professional services, regulatory violations, and claims related to known issues or prior acts.
Why does media liability coverage belong on a cyber policy?
Media and the way we use it has changed significantly over the years. If you look carefully at media content disseminated through electronic means, media liability gets intertwined with cyber liability.
Case Example: Defamation from social media
A retail business has an online presence including a website and numerous social media pages. A hacker gets access to their social media account and defames a competitor’s business. This results in a lawsuit initiated by the competitor claiming lost revenues as a result of this defamation. Is this a cyber claim or a media claim?
Case Example: Privacy violation by employee
A PR business has a number of high-profile clients. A rogue employee takes information that is meant to be private for a client and posts it on the PR business’s website. Is this privacy liability or media liability?
Media liability often overlaps with other cyber risks. A blog post might violate privacy laws (PIPEDA, HIPAA, or GDPR), or a social media campaign could spark a defamation claim. Including media liability in a cyber policy ensures seamless coverage across related exposures, legal, reputational, and technical.
Coverage variations
Given that media liability is a peripheral coverage for a cyber policy, the actual media liability coverage on cyber policies varies greatly. In fact, it may not exist at all in some policies, while in others it may be almost as comprehensive as a stand-alone media policy.
Examine your cyber policy carefully to ensure you understand what you are buying.
- Some cyber policies restrict Media Liability to Internet Media Liability, meaning coverage is restricted to only internet activities.
The definition of Media may read as “content in any form including” or may be restricted to “digital content” that is “disseminated via electronic means”. - Look at exclusions and carve backs to intellectual property coverage such as exclusions for software copyright.
This is particularly important for a technology company, particularly if they’re developing proprietary software. The media liabiity clause may include an exclusion around “copyright related to software, source code, or software license”. Considering many companies are investing in and developing their own software and apps to support their core business, this may be an overlooked exposure. - Named perils are generally described under “wrongful act” in the media section of the policy or “media liability”.
Patent and trade secret claims are usually excluded, as well as deliberate wrongful acts.
As nearly every business engages in some form of online publishing, whether it’s maintaining a website or posting on LinkedIn, the relevance of this coverage has expanded well beyond media and advertising companies. Understanding these distinctions helps buyers ensure the policy aligns with their organization’s specific risk profile and publishing practices. Due to the variation in policy language, organizations should work closely with their broker to review and negotiate wording.
Key Takeaways
- Media liability coverage protects against content risks like defamation and copyright claims.
- ML cover on a cyber policy commonly focuses on digital content.
- Coverage terms vary. Read policy definitions and exclusions closely.
- Most organizations need this coverage.
- Work with a broker to ensure the policy fits your risk profile and publishing activity.
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