There is so much opportunity (and money to be made) as a professional social media influencer/content creator. However, developing a successful business in this space is not without its risks - which is why insurance is a must. But with so many different things to think about, where do you begin with creator insurance?
Why do social media influencers need insurance?
If you’re creating content for a living, it’s worth securing insurance to arm yourself against possible threats. As the value of your audience and influence grows, so does the reputational and financial risk.
For instance, you can face challenges such as:
- Being sued
- Having your brand defamed
- Having your content stolen
- Being hacked on your social media platform
- Having your data and privacy breached
- Having a brand claim a breach of contract
- Being charged by the FTC for not disclosing a partnership
It’s a misconception that having personal insurance, such as life and health, is enough for an independent content creator. You need to source creator-specific policies that will protect your business from all of the above (and more).
Not sure what types of insurance you need and why? That’s okay—we’ve got you covered (no pun intended!). Just keep reading.
5 types of insurance content creators need
Although every business is unique and requires different insurance solutions, the following recommendations can help the majority of social media influencers/content creators.
1. Property and contents insurance
Most content creators tend to work from a home office or studio. Alternatively, you may rent a co-working space or some other kind of commercial property. Either way, this type of insurance can reimburse you for direct property losses, whether it’s because of a burglary, natural disaster or fire.
Do you use expensive equipment to create your content? If so, this also needs covering in case the worst should happen to the property where you work and store your equipment. Under a property and contents insurance policy, you will receive the compensation you need to repurchase the equipment without delay or further losses.
Any of the following can be classed as property contents:
- Desktop, laptop and/or tablets used for work
- Stock and samples if you sell your own merchandise
- Building decorations, fixtures and fittings
- External signs, satellite dishes and aerials (if attached to the building)
- Pipes, wires, cables and control equipment within the premises
- Photography and video equipment
Speaking of photography and video equipment, it’s worth mentioning that not every property and contents insurance policy will include technical and portable equipment. You may need to take out a separate technical and portable equipment cover, but it all depends on your provider. (Check the fine print!)
2. Loss of income insurance
The biggest threat for creators when it comes to income disruption is getting hacked.
Social media hacking is on the rise and is one of the biggest threats a content creator can face. In fact, social media account takeover complaints to the Identity Theft Resource Center have more than quadrupled from 2020 to 2022.
And according to Notch's own data, on average an Instagram account gets hacked every 10 minutes.
Loss of income insurance like Notch covers you against the financial damage caused by a hack, replacing lost income until things are up and running again.
3. General liability
Most businesses have general liability insurance, which offers protection against common risks companies may be subjected to. This is known as “all-risk” insurance and applies to any industry.
Given the widespread benefits, general liability insurance is usually the first policy that new business owners look into. It can cover against:
- Accidents, whether this is a personal injury or one that occurs on your premises while you’re shooting and editing content or doing any form of business activity
- Property damage, such as what we previously discussed in section #1
- Libel, which is published false statements that can be detrimental to your business image, whether they come from a brand or another influencer
- Travel insurance, whether you’re traveling locally for a brand meeting or internationally for a PR trip and you need coverage against unexpected costs that may occur while you’re away
Speaking of travel insurance, keep in mind that standard liability policies tend to only cover you within the United States. If you usually travel worldwide or plan to visit certain countries outside the US, you will need to find suitable general liability insurance that covers more ground.
4. Professional liability
Professional liability can often be referred to as Errors and Omission (E&O) insurance, which covers you if a client claims you have delivered substandard content or service. For content creators, this could include the following situations where a brand is adamant there have been:
- Work errors
- Missed deadlines
- Budget overruns
Additionally, professional liability covers legal liability against lawsuits where the client has accusations of plagiarism, invasion of privacy, libel and defamation. In other words, you have supposedly copied someone else’s content, revealed confidential information about the brand, made a false or misleading statement about a partnership or tried to damage a business’ reputation.
If you are sued for any of the above, your policy will cover defense costs. It should also include damages if the court finds you liable.
The amount you pay for professional liability coverage will depend on how much you earn and the risks involved in your particular line of work.
5. Media liability
Media liability is an insurance policy that protects media-related businesses, from advertising agencies to broadcasters, and video producers to content creators. It’s designed to help the policyholder cover costly damages from a range of media-related claims.
How does this type of insurance benefit social media influencers? Generally speaking, it provides coverage for your paid brand partnerships. Although it’s best practice to sign a contract between yourself and the brand that outlines the campaign deliverables, timeline, scope of work, deadline, fee and payment terms, media liability will protect you if you’re promoting goods and services without a direct contract.
Media liability also covers content creators in several other instances, such as:
- The breach of a contract
- The breach of advertising regulations, including failure to disclose an ad in line with Federal Trade Commission (FTC) guidelines
- Third-party allegations that there was an unflattering or negligent promotion
- Third-party allegations against copyright and trademark infringement
- Bodily injury, which can cover accidents that happen from physically capturing events and experiences, or any associated property damage
Do you outsource any of your tasks, whether it’s admin, content creation or social media management? In addition to the above, media liability provides cover if you are held accountable for someone else’s mistake. Just ensure your policy is broad enough to mention yourself and any employees you may have.
Being a business owner of any kind means that you are often working even when you’re not supposed to be working. Even so, it’s important to find time to manage the business and financial side, which includes securing your own mix of insurance.
Finding the right mix of insurance coverage as a social media influencer/content creator is essential. It will protect you against the impact of hacks, lawsuits, and other damages, giving you the peace of mind you need to focus on what you do best - creating content.
What is social media insurance?
Social media insurance covers the different risks involved with owning and operating social media accounts. For example, insurance against social media hacks is a key type of insurance coverage for content creators and other business owners who use Instagram and other channels to earn income.
Do influencers have insurance?
Yes. Many influencers rely on their content to earn an income and therefore insure themselves against the various risks involved with running an online business. There are several broad types of insurance for business owners, like general liability and media liability, but Notch is the only insurance option tailored specifically for social media accounts.
Do social media influencers need insurance?
Yes, any social media influencer who is generating income through their social media accounts should insure their accounts against hacks and other risks. Hacks are one of the gravest threats to the livelihoods of social media influencers, with an Instagram account getting hacked every 10 minutes in the U.S alone.
Aside from insurance against hacks, influencers should consider getting media liability insurance, which protects them against third-party allegations of copyright and trademark infringement, amongst other things.
How likely is it to get hacked on Instagram?
Notch's data shows an Instagram account gets hacked every ten minutes on average in the U.S. And according to this report from NordVPN, 37% of Americans have had their social media profiles hacked, while 9 in 10 people know someone who has been hacked.
Can you protect your Instagram from being hacked?
Yes and no. You can certainly reduce your chances of being hacked by following best practices like having a strong password, setting up two-step verification, and not clicking on suspicious links.
However, hackers are increasingly sophisticated in 2022 and can hack even the most tech-savvy of users, using a variety of social engineering and phishing methods.
Because it is impossible to fully protect yourself against getting hacked on Instagram and other social media platforms, insurance like Notch is highly recommended.