Experience a World of Difference MEDIA LIABILITY INSURANCE. What Insurance Agents Need to Know WHITE PAPER

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Magdalen Regina Dennis
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1 Experience a World of Difference MEDIA LIABILITY INSURANCE What Insurance Agents Need to Know WHITE PAPER EC AUG 2015

2 Media Liability Insurance: What Insurance Agents Need to Know A multimedia firm sues a TV company for trademark infringement. A court rules in the TV company s favor after it spends more than half a million dollars in defense costs. A newspaper runs an article about sex offenders that accidentally names the wrong man in connection with sex crimes. The mistake costs the newspaper $250,000. A film production company holds a live Q&A session with the cast of its new film during which a cast member makes disparaging remarks about a director. The director sues the production company for defamation, costing it a $50,000 settlement and $25,000 in defense costs. A media company doesn t look closely enough at existing licensing agreements before using a new acquisition s images online. The original licensor sues, and the media company pays $75,000 in defense costs and the balance of its $1 million policy limit. All of these cases are real and they clearly show that allegations of copyright infringement, defamation, misappropriation of ideas, and related disputes can happen at any time. They can happen to those who don t knowingly commit these actions, and who perform extensive due diligence before using images and ideas. And even if the court judges in an accused s favor, these cases can cost hundreds of thousands of dollars sometimes more in court costs. That s enough to keep any business owner in the media sector up at night. It s why multimedia liability insurance is so crucial for those in the media industry. 2

A newspaper runs an article about sex offenders that accidentally names the wrong man in connection with sex crimes. The mistake costs the newspaper $250,000.

3 What Is Media Liability Insurance? Media liability insurance or multimedia liability insurance are umbrella terms that encompass several different lines of coverage, all designed for different types of insureds in the media sector. Insurance products that fall under this category include: Multimedia and Newsmedia Liability Insurance In-house Advertiser, Advertiser, and Marketer Liability Insurance Copyright Insurance Video and Film Producers Liability Insurance Publishers and Authors Liability Insurance Television, Radio, and POD Broadcasters Liability Insurance Media E&O Insurance Entertainment E&O Insurance Trademark Insurance Producers E&O Insurance While every policy is different, the types of suits typically covered include: Allegations of copyright and trademark infringement Personal and advertising injury: libel, slander, and defamation of character Misappropriation of ideas Disputes over authorship recognition 3

Insurance products that fall under this category include: Multimedia and Newsmedia Liability Insurance In-house Advertiser, Advertiser, and Marketer Liability Insurance Copyright Insurance Video and

4 Who Needs This Type of Coverage? Any company or any individual who creates, produces, and distributes content via any kind of platform needs media liability insurance. This is an extremely broad customer base, and spans television, radio, print, and digital. Many companies are required by contract to buy this type of coverage before they distribute their content. Here are just a few examples of high-potential prospects for this type of coverage: A film producer who just signed a new distribution agreement with a network to release their most recent film, documentary, or television series. A marketing or advertising agency looking for Errors and Omissions coverage that provides Intellectual Property protection for all their created materials. Publishers of content including books, films, videos, photos, articles, clips, or artwork. Companies that have their own in-house marketing departments. These divisions often carry their own media liability coverage. What Should You Look For in a Wholesale Broker for Media Liability Insurance? With the right wholesale broker, you don t need to have in-depth knowledge of this line of coverage yourself in order to place this type of risk. But you ll need to find a broker with the right expertise, and access to the right markets. 4

Here are just a few examples of high-potential prospects for this type of coverage: A film producer who just signed a new distribution agreement with a network to release their most recent film,

5 Ideally, your wholesale broker will be able to develop policy language and negotiate coverage enhancements with underwriters prior to presenting the terms, and will have a proven history of negotiating and structuring multimedia liability programs. Most importantly, you ll need someone who can discuss the coverage with insureds on your behalf. The right wholesale broker has the in-depth knowledge to facilitate the sales process and match your prospect with the right market. To find the right partner for placing multimedia risk, ask the following questions: Does the broker know the difference between carrier forms? Have multiple insurance carriers made a point of referring multimedia business to your wholesale broker? Do they offer direct access to at least six insurance carriers with standalone multimedia liability forms? This will help enormously in getting competitive pricing, terms, and conditions. How many new standalone multimedia liability submissions does the wholesale broker work on each week? How many do they bind each month? Can they discuss a wide variety of specific multimedia claims scenarios and coverage structures in detail? Are they willing to provide original coverage comparisons upon request? Even if you don t have the expertise to place specialized multimedia risk on your own, the right wholesale broker can be invaluable in helping you sell your prospects and expand your business to include these products. 5

The right wholesale broker has the in-depth knowledge to facilitate the sales process and match your prospect with the right market.

6 About Worldwide Facilities, LLC Worldwide Facilities is a national wholesale broker and managing general agent. In business since 1970, our seasoned team of brokers and underwriters offers specialized knowledge of media liability coverage, broad access to specialty markets, and extensive expertise in placing challenging risks. We offer unmatched tools, resources, and strategies to help insurance agents and brokers in placing multimedia risks including training materials and marketing support. Take advantage of our expertise today contact Jeremy Huang, in our Irvine office at (949) or jhuang@wwfi.com to schedule a conversation. Disclaimer This whitepaper is Copyright 2015 by Worldwide Facilities, LLC It may be freely redistributed in its entirety provided that this copyright notice is not removed. It may not be sold for profit or used in commercial documents without the written permission of the copyright holder. This whitepaper is provided as is without any express or implied warranty. This whitepaper is for educational purposes only and does not purport to provide legal advice. If you require legal advice, you should consult with an attorney. The information provided here is for reference use only and does not constitute the rendering of legal, financial, or other professional advice or recommendations by Worldwide Facilities, LLC The listing of an organization or website does not imply any sort of endorsement and Worldwide Facilities, LLC takes no responsibility for the products, tools, and Internet sites listed. 6

challenging risks. We offer unmatched tools, resources, and strategies to help insurance agents and brokers in placing multimedia risks including training materials and marketing support.

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