From today, specialist global insurer Hiscox is offering Influencer and Public Figure Protection insurance, covering the risks faced by influencers and high profile individuals as they lead their lives in the public eye.
The new product will make Hiscox the only insurer in the UK currently offering a tailor-made policy for influencers and public figures that includes cover for breach of promotional contract.
The value of the influencer market is estimated to reach as much as $10bn by 2020 . In 2017 alone, there were over 12.9 million brand-sponsored posts on Instagram with this number expected to double by the end of the year.
The policy will be aimed at those with a public reputation and/or social media used for commercial purposes, such as Instagram users promoting products, those monetising a YouTube channel, podcast hosts, guest lecturers and those endorsing major brands. The product will cover as standard:
- Breach of a promotional contract - such as claims made by agencies or brands in relation to the quality of a promotion, endorsement or sponsorship undertaken
- Breach of advertising legislation – including unintentional breach of any advertising laws, regulations or codes of practice
- Unauthorised access or posting on a social media account – such as those targeted by hackers Intellectual property infringement – including copyright infringement or the breach of a license
- Defamation – actual or alleged libel, slander and malicious falsehood arising in online posts or in interviews
- Breach of privacy – which covers breach of confidence and infringement of any right to privacy arising from media activities
- Worldwide cover - including defence costs, damages and a choice of legal counsel.
In addition to the standard policy, customers will also be able to purchase an optional enhancement which provides coverage for defence costs associated with investigation by an advertising regulator in relation to disclosure of advertising.
James Brady, Head of Media, Hiscox UK & Ireland commented: “Influencer marketing has expanded exponentially in recent years as brands increasingly leverage the power and sway these individuals have over public opinion and product sales. As a result, influencers and those in the public eye are facing an evolving set of often complex risks.
“The ramifications of a poorly judged social media post or throw-away interview remark are rarely far from the headlines, but at present there is no true solution that offers protection for these individuals. Our Influencer and Public Figure Protection policy is a market-first, offering comprehensive cover including cover for breach of contract. We’ve been insuring high net worth individuals, creative companies and content creators for decades so this is a natural evolution in an area where we already have long-standing expertise.”
For more information visit https://www.hiscox.co.uk/broker/commercial-insurance/media/influencer-protection
Notes to editors
Full product details are available in the full policy wording: https://www.hiscox.co.uk/sites/uk/files/documents/2018-09/19413_Influencer-Public-Figure-Protection_Wording.pdf
Estimated market size according to Mediakix http://mediakix.com/2018/03/influencer-marketing-industry-ad-spend-chart/ (external link)
Total number of brand-sponsored posts according to Influencer Marketing Hub https://influencermarketinghub.com/the-rise-of-influencer-marketing/ (external link)
Example claim scenarios:
An actress posts a childhood photograph to her Instagram account where it is seen by 750,000 followers. The photographer who took the photo alleges he did not give permission to have his photograph shared and brings a copyright infringement claim against the actress. This policy covers the costs to defend the copyright infringement allegation, as well as the payments to settle or the court awarded damages (which can be $150,000 or more in US courts).
A high profile CEO engages in a heated Twitter exchange, where he makes an accidentally inaccurate statement about his rival. Though he retracts the statement, it has been seen by his 12 million followers, and the rival sues for libel and emotional distress. Our policy provides coverage for the costly defence of a defamation allegation (usually mid-six figures), as well as the indemnity award.
A social influencer forgets to include #ad on sponsored posts. This causes the Advertising Standards Authority to investigate and issue an adverse ruling against the brand. The brand sues the influencer for breach of contract after suffering reputational damage. The influencer opts to settle this claim with the support of our in-house counsel, and the policy pays the settlement amount.
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