Influencer Insurance

Influencer Professional Indemnity Insurance

Influencers have become a big part of society in the last decade and a half. With the birth of the internet and all of the platforms and apps that came with it, people began blogging, videoing and posting all kinds of content.  

More consumers were buying products that they saw an influencer using and relied on recommendations made by them. Companies realised the power that social media marketers held and started collaborating with influencers as ongoing ambassadors for their products.
In return, influencers felt the best way to engage with brands was through an influencer marketing platform. This symbiosis between influencers and companies has led to influencers being major drivers behind social media marketing success to this day.  

Being an influencer has many benefits, but potential liabilities too, especially since social media platforms are largely unregulated and anyone can post almost anything they want regardless of how safe or factually correct their content is.
Professional indemnity insurance for influencers is a type of insurance that sets an influencer’s mind at ease regarding potential liabilities, affording them the headspace to get on with their online marketing business. 

What exactly is influencer insurance? 

Influencer insurance is specially designed for influencers who use their platforms to sell goods or share advice. Social media influencers often give advice or endorse certain products or services. If their advice or endorsements lead to losses or harm for clients, they could be held liable.
This insurance protects influencers from the risks associated with being a well-known figure who could be held liable for various potential claims. Influencers can be held liable for things like misinformation, bad or harmful advice.

Do micro-influencers need professional indemnity insurance, or is it only necessary if I have a huge following? 

Indemnity cover for influencers is a good idea for all influencers, no matter the size of their following. Of course, the larger your following, the higher the risk of multiple claims against you. But as a micro-influencer, you could also face significant liabilities.
It only takes one unhappy person to lay a claim against you. If the person in question suffered a major loss or setback because of your advice or endorsement, you could face a crippling compensation payout to them, not to mention the legal costs this might incur.
The size of your following is a factor, but even a small following could lead to potential liabilities. It is therefore highly recommended to take out indemnity cover for influencers. 

What is the chance of a social media influencer being sued by one of their followers? 

Being a social media influencer may seem like a low-risk job since you’re not in direct contact with members of the public. However, there are inherent risks in the job that you should take into consideration.
For instance, you could unwittingly be spreading misinformation or unintentionally defaming another person or brand. The power of being an influencer is that a single person can have a far-reaching influence on others. The consequences of this could be significant so professional indemnity insurance for an influencer comes highly recommended. 

What risks does professional indemnity insurance for an influencer protect against? 

Influencer indemnity insurance is specially tailored for social media influencers and would typically cover the following types of claims: 

1. Misinformation – Claims that arise from you unwittingly spreading misinformation about a person, service, product or brand. 
2. Negligent advice – Claims for damages caused by wrongful advice. 
3. Defamation – Libel suits that arise from damage your influence caused to a third party’s reputation. 
4. Confidentiality breach – As a brand ambassador you will likely have restrictions about what you can share when it comes to information about the company or brand. Should you be sued for breaching your contract, your indemnity insurance may cover the costs. 
5. Intellectual property – Claims against you for infringing on intellectual property laws. 

These are some of the common coverage options included in professional indemnity insurance. Be sure to check all of the policy details to find out the specific inclusions and exclusions of your specific policy. 

What are the typical policy exclusions with professional indemnity insurance? 

There are a couple of hard lines that you can not cross as an influencer. Professional indemnity insurance for social media influencers, as with any other type of insurance, will exclude particular situations. Examples of situations that would be excluded from your policy coverage include: 

1. Deliberate misinformation – Claims that arise from you deliberately spreading wrongful misinformation will not be covered. 
2. Illegal or criminal acts – Claims that arise from illegal or criminal acts caused by your influence. 
3. Preexisting disputes – Any disputes that were already known about before the coverage was in place will not be covered. 

How much does influencer indemnity insurance cost? 

The cost of professional indemnity cover for an influencer is not the same for all influencers. It depends on things like the extent of your reach, the type of content you put out, and the extent of engagement with your channels.
If you are a micro-influencer you’re probably looking at a relatively smaller annual fee, but if you have a large following with a lot of engagement your premiums could be higher.
Your insurance provider will assess the unique risks related to your work and give you an appropriate quote based on your risk. The best way to find out the cost of influencer insurance for you is to get multiple quotes to find the best insurance for your business needs and budget. 

What do professional indemnity insurance companies use to calculate my insurance premium? 

Insurance companies usually could consider the following factors when calculating an insurance premium for an influencer: 

• Followers – The number of followers and their engagement metrics. 
• Content – The type of content you produce. Some content might be considered more risky than others.
• Claims history – Your track record when it comes to previous claims could raise the stakes.
• Platforms – The various platforms you use will be considered as they may have different risks associated with them. 

Does an influencer’s claims history affect their premium? 

As with most other types of insurance, your claims history will usually affect your premium. The reason is that if a person has multiple claims against their name, it could indicate that they are prone to acting in ways that elicit liability claims. A high-risk person usually has to pay a higher premium than those with a no-claims history. 

How can I reduce the cost of my influencer insurance? 

Nobody wants to spend too much money on insurance costs. To avoid a high premium you may want to consider the following strategies to lower your influencer insurance costs: 

• Keep a low or clean claims history.
• Create responsible content and stay within the bounds of safe practices.
• Increase your excess amount in the case of a claim. Doing so may lower your premium. 
• Re-evaluate your insurance policy regularly and make adjustments when necessary to eliminate any unnecessary cover.  
• Compare multiple policies to ensure you are not overpaying.