Social media influencer insurance is an insurance solution intended for the innovative social media industry. It covers everything standard insurance packages may not. Thus, many insurance providers strive to create tailor-made solutions specific to the needs of particular influencers. If you want to know more about it, why it is necessary, and who it is for, keep on reading.
Why does it exist?
Here is an example of why social media influencer insurance is necessary. Some influencers possess a lot of power, so much that it may be frightening at times. But, because of that, these people really deserve this flattering epithet. However, several years ago, Kylie Jenner casually asked if anyone uses Snapchat anymore. Of course, this caused a massive stir for a very simple reason. Coming from an influential person like her, such a question devastated Snapchat’s market value practically overnight.
With a sizeable following on different platforms, these people’s opinions matter. And therefore, other parties often hire them to promote a product or even different views and values. Moreover, an influencer can be a celebrity, such as the aforementioned Kylie, or any social media user who has managed to gather a substantial social media following and is working towards building and cultivating their personal brand.
Now, if we talk about the content that influencers create, it can often be entirely unplanned and even live. Under such circumstances, not everything is in their control. What is more, they can unwillingly incite some trouble, as the before mentioned Kylie did. It’s unlikely that she toppled Snapchat by design. Or, for example, imagine an influencer has been hired to promote the services of a moving company that will relocate them from the US to Canada. And while they are doing that, praising the company for enabling them to resettle hassle-free to Canada, they accidentally insinuate that another company’s service is inferior. This type of situation can lead to some pretty unpleasant lawsuits.
As you can see, such scenarios open influencers up to an array of exposures. Think about causing reputational damage to a brand. But also, there is the issue of copyright infringement and the invasion of privacy.
How does an influencer’s opinion differ from a regular person’s online review?
You may be wondering how and why an influencer’s honest opinion differs from a review someone posted on TripAdvisor or Yelp. Well, it does quite a lot. A comment that an influencer makes can potentially affect millions of people. Through shares, it will reach tremendous numbers of social media users, even across different platforms. It is something influencers have to understand, along with the liability that comes with such great responsibility and power.
So, it’s not hard to see how that differs from a comment that a dissatisfied user made on a website created specifically for the purpose of people sharing their experiences.
Being an influencer is a business like any other
There is no much difference between influences and any other entrepreneur. So, just like entrepreneurs, influencers need to protect their income and shield their businesses against unexpected situations.
However, what makes entrepreneurs in a traditional sense of the world and influencers different are the unique sets of difficulties that the latter face. For instance, the change of consumer tastes happens fast and often. So, what makes a social media user an influencer can be pretty short-lived, trend-related, and of limited shelf-life. Still, those who stay active and in demand for years have learned to swim in that world and adapt. They use the changes to their advantage, grow with them, and evolve.
The second thing that differentiates influencers is that they are actually very young business owners. As such, they are likely very inexperienced and need help designing strategies to secure their wealth. That includes the right type of insurance. For instance, the coverage that could be highly beneficial for influencers is cyber insurance. We have seen many celebrity and influencer accounts hacked. So, this is a vital consideration for people who so heavily rely on their social media platforms.
Who is social media influencer insurance for?
This type of insurance is suitable for anyone who participates in the online promotion of different products and marketing. So, social media commentators and influencers are the people who would benefit the most from this coverage. But it is not only for individual influencers operating on their individual social media accounts. This type of insurance is also adequate for larger organizations that provide such services to various manufactures and fashion companies.
Who should get this insurance?
- Bloggers and vloggers (aka video bloggers), podcast hosts
- Influencers (social media personalities and others with large numbers of followers, including micro and nano influencers)
- Thought leaders, philosophers
- Public figures
- Sports personalities
- Professional sports clubs
- Artists, photographers, musicians
- Reality TV stars and game show contestants
- Founders and Senior Company Directors
Since users and fans view social media content all over the world, social media is not limited only to an influencer’s home jurisdiction. So, this coverage is valid worldwide.
Liabilities that social media influencers face
There are different liabilities that influencers can face. Here they are:
- Libel/slander against a person or a brand – As mentioned, this can lead to lawsuits as the line between legal and illegal speech very thin.
- Copyright infringement – Using someone else’s intellectual property or work to create content without approval.
- Invasion of privacy – If you take pictures or videos in public and someone is in those, they may object to appearing in your content. Also, publishing private information or images belongs to this category.
- Property damage – This includes both other people’s property you accidentally damage and damage to your property. That includes cameras, computers, phones, etc.
- Non-performance of contract – If you fail to produce the number of posts stated in the agreement, you can face a lawsuit, even if the reasons are out of your control. And, of course, the contract may specify what type of behavior is unacceptable or expected. This is due to the effects it can have on the brand’s reputation.
- Financial fraud – If you make false claims regarding a product or service and someone refers to your content as the reason for using these products or services. Moreover, even if you don’t state untrue things, but the company that contracted you does, you can still end up in a lawsuit.
Social media influencer insurance coverages
As a social media professional, you will need coverages tailored to your specific needs and work. Therefore, this type of insurance is customizable, and below are some of the typical coverages for social media influencers.
- Professional liability – protects you from legal claims of things like invasion of privacy, breach of contract, or copyright infringement.
- Commercial general liability insurance – protects you in case of slander, personal injury, false advertising, and property damage.
- Cyber liability and privacy insurance – covers costs induced by a cyber-attack, such as ransom demands, fees for data and system restoration, etc.
- Property insurance – provides coverage for your expensive equipment, workplace, and other business assets in case of fire, sewage backup, burglary, flood, etc.
While social media influencer insurance protects influencers and their business, they must comprehend the extent of their responsibilities. For example, they have to be mindful not to breach other’s intellectual rights. Moreover, defamation is a serious offense, and it wouldn’t be an isolated case that someone ends up in court for slander. And besides coverage for these, it is also necessary to get an insurance package that will cover a more comprehensive set of exposures. Consider bodily harm or property damage. This can happen if an influencer travels to a high-risk location to create content, for instance. And we have already mentioned privacy concerns and cyber-crime. All in all, those who work in this fast-growing industry will benefit significantly from insuring themselves.
About Author: Nadia Davis is a social media marketing expert and a content developer. She loves to research what she has aptly named “the influencer phenomenon” and share her findings and observations online. Due to her work, Nadia spends a lot of her time sitting behind the screen. Therefore, she uses any chance she gets to be outside and stay active.