Why is insurance a must for social media companies?
Social media companies base their entire business around promoting their clients on various online platforms. Because of this, they're open to several liability risks like being sued for violating a copyright or defaming a competitor. Business insurance helps cover legal costs related to social media marketing.
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6 insurance policies every social media company should consider
These policies protect against common risks in the social media and advertising industry.
Media liability insurance
This policy covers lawsuits related to your work performance, from advertising injuries to mistakes and oversights. It's also called professional liability insurance or errors and omissions / E&O insurance.
- Copyright infringement
- Libel and slander
- Missed deadlines
General liability insurance
A general liability insurance policy defends against third-party lawsuits, such as a client who slips on an icy front step at a social media company's office and suffers an injury. It's often required for a commercial lease.
- Client bodily injuries
- Accidental damage to a client's property
- Lease and loan requirements
Business owner's policy
A business owner's policy, or BOP, combines general liability coverage and commercial property insurance at a discount. Small business owners are often eligible for this bundle.
- Slip-and-fall injuries
- Third-party property damage
- Business property damage
Workers' comp insurance
Workers' compensation insurance protects social media businesses and sole proprietors from work-related medical bills that health insurance won't cover. Most states require this coverage for employees.
- Medical costs from work-related injuries
- Disability benefits for injured workers
- Legal defense costs from workplace injuries
Cyber insurance
Cyber insurance helps social media companies recover from costly cyberattacks and data breaches. It's also called cyber liability insurance or cybersecurity insurance.
- Ransomware attacks
- Client notification costs
- Data breach investigations
Commercial auto insurance
Almost every state requires commercial auto insurance for vehicles owned by a social media agency or other media company. It covers costs in the event of an accident involving your business vehicle.
- Injuries caused by your company vehicle
- Damage to someone else's property
- Vehicle theft and vandalism
Social media company insurance costs
From our customer data, here's a quick look at average social media company insurance costs:
General liability: $38 per month
Media liability: $95 per month
Workers' compensation: $46 per month
Factors that can influence your premiums include:
- Types of professional services offered, such as influencer marketing, social media, digital marketing, advertising, podcast marketing, and public relations
- Number of employees
- Value of your business property
- Insurance products purchased
- Policy limits and exclusions
- Claims history
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Why social media companies choose TechInsurance
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Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
Common questions about business insurance for social media companies and consultants
Review answers to frequently asked questions (FAQs) about insurance for social media businesses and more.
What is social media liability insurance?
Social media liability insurance coverage is crucial for any business that uses social media channels, especially a social media company. With every campaign you create and post for your clients on their social media platforms, your business is vulnerable to accusations of defamation, copyright infringement, and more.
A commercial general liability insurance policy or CGL can protect you from these advertising injury claims, as well as any third-party injuries and property damage.
This policy can help pay for legal expenses when you're sued over social media posts, including:
- Slander or libel: You defame someone or another business through speech (slander) or writing or pictures (libel) with false statements.
- Invasion of privacy: You make oral or written statements that misappropriate someone’s name or likeness, intrude on someone’s right to privacy, or disclose private facts.
- Unpermitted use of someone else's advertising themes or concepts: You misappropriate a firm’s intellectual property for your own purposes.
- Copyright infringement: You use, distribute, or display copyrighted work without the owner’s permission.
What other types of coverage do I need for a social media agency?
Social media companies and independent consultants should also consider the following types of insurance outside of a general liability policy and workers' comp coverage when building their risk management plan:
- Business interruption insurance: If a covered peril causes your business to close temporarily while repairs are made to your office space, this policy will pay for employee wages and other day-to-day expenses until it can reopen. It's sometimes included with commercial property insurance or a business owner's policy.
- Commercial umbrella insurance: When your general liability, commercial auto, or employer's liability insurance reaches its limit on a claim, umbrella insurance activates to provide additional coverage.
- Hired and non-owned auto (HNOA) insurance: Media professionals who drive their own car to meet clients should invest in this insurance, as your personal auto insurance won't cover business use. HNOA provides liability coverage for vehicles used but not owned by your business, including personal, leased, and rented cars.
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