Influencers are entrepreneurs whose entire business identity relies on the online space. From TikTok to Instagram and beyond, these content creators are charting new territory as continued innovations consistently change how their work is done. With this shifting landscape comes myriad risks unique to the influencer space.
For influencers, carrying comprehensive insurance coverage is more critical than ever before, and most commonly, more than one type of policy is necessary for adequate protection. Among the many policies you may be considering, remember to include E&O insurance.
Here’s an overview of why comprehensive production insurance for influencers should have E&O protection and what it can do for your business.
What Is E&O Insurance?
E&O insurance, or errors & omissions insurance, is a type of protection that covers professionals such as influencers when they make a mistake that causes harm to another party.
Suppose an influencer is liable for causing damages to a third party, and that party can assign a monetary value to those damages. In that case, the influencer may compensate the injured individual.
Remember—injury does not need to be physical and can affect someone’s reputation, business image, and more. Without E&O insurance, the influencer would need to pay these damages out of pocket, which could significantly impact their financial well-being and even end their career.
Why Do Influencers Need E&O?
The harm that influencers cause can spread to massive audiences of thousands or even millions of viewers. Thus, the financial damages they may be liable for could be significant. Influencers need E&O insurance to protect them against their business model’s accidental or unexpected effects.
For instance, if an influencer recommends and supports a product that turns out to be dangerous, those who used the product as a result of the influencer’s recommendation and were later harmed could pursue legal action against the influencer. Alternatively, an influencer hosts a podcast about current video game voice acting events.
During discussions with their guests, they make a comment that accidentally suggests a specific voice actor has done something they didn’t. As a result of this alleged action, the company terminated the voice actor’s contract.
The voice actor can pursue legal action against the influencer for the financial losses related to their erroneous statement.
Because so much of what an influencer does relies on connections, trends, and broad dissemination, the recipe for accidental errors and harmful omissions during business necessitates insurance coverage.
What Might Not Be Covered by E&O Insurance?
While E&O insurance can cover many of an influencer’s most pressing needs, intellectual and conceptual protections do not cover every type of negligent or harmful behavior. For instance, if the influencer works with a team, that team still has the right to file claims for discrimination or harassment against the influencer.
Similarly, illegal activities or intentional wrongdoing are not protected. If an influencer recommends a product that they know is harmful, or if they intentionally obscure information to drive purchases and other behaviors, they are fully liable. Their E&O insurance will not assist them.
Like most types of insurance coverage, E&O protection only applies starting from the date the policy is approved. Thus, if damages due to the influencer’s behavior occur while the policy is in the underwriting stage, the influencer will be responsible for those costs.
Other types of liability, such as physical harm, property damage, or employee illness, will need to be covered with other policies, such as general liability, professional liability, and workers’ compensation.
Get Errors & Omissions Insurance for Your Content Creation with MFE
The world of content creation is notorious for staying fresh and exciting as new products, trends, and technology continue to evolve and revolutionize the space. This makes it easier to fall behind the wave of information when shielding your business from accidental errors as you work.
For this reason and more, influencers who rely on their content creation for their income should invest in an errors & omissions policy to protect them if their online content causes harm to others.
The experts at MFE Insurance can help you explore the right mixture of coverage for your business size and reach. Contact MFE Insurance to schedule an appointment and collaborate with a professional on the insurance protection that suits your goals.