Insurance for Online Businesses, Content Creators, and Influencers

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Written By Brian T. Edmondson, Esq.

Hi, I'm Brian. I'm an internet entrepreneur & lawyer. I write about all things internet business & law.

Hey, it’s Brian. This article is for informational purposes and is NOT legal advice, cool? Onto the article…

As an online business owner, whether you’re an e-commerce entrepreneur, YouTuber, influencer, content creator, or whatever else, it can be tempting to think that you don’t need things like business insurance.

You might believe that sort of coverage is only for big corporations… or for businesses with physical locations.

Sure, if you’re a “one-person show,” you probably don’t need Directors & Officers coverage. 

But the truth is that any business, even those that exist solely online, do face a variety of risks that could impact your profits – even shut you down.

And insurance is a key part of risk management for those potential liabilities in areas like:

  • Marketing
  • Contracts
  • Issues caused by the product or service you offer
  • Lost or stolen equipment
  • Defamation lawsuits
  • And more

Like any insurance you have in life, your hope is that everything will always go smoothly and you’ll never have to use it.

But that’s not always the case.

Accidents happen.

Unforeseen circumstances pop up.

And even if it’s not your fault, per se, you could be held liable.

And having insurance puts you in a much better position to react and protect your assets and income.

Importantly, you should know that without proper coverage, it’s not only your business’s assets that could be on the line… but also your personal assets.

Not to mention, it’s always good to have that peace of mind that comes with being covered appropriately insurance-wise.

Types of Online Business Insurance You Should Look Into

There are several types of coverage you should consider for your online business.

Some were created long ago to protect any business.

And there are also newer insurance products intended specifically for influencers, e-commerce entrepreneurs, and the like. 

You should also consider that if you have any employees… you’ll need insurance that those who work alone would not need.

And if you a have physical location or do live events in person, you could also have different insurance needs.

With all that in mind, here are some insurance products to take a close look at.

And do keep in mind that a good insurance professional can help you determine the best level of coverage for your specific needs.

Business Owner’s Policy

Originally, intended for traditional small business owners, this type of coverage also works well for online ventures.

Basically, this bundles together general liability insurance and commercial property insurance.

This type of policy will protect you from lawsuits from injured clients (if, for example, they were hurt after using your product) and compensate you if there is damage to where you do business or your equipment (computers, cameras, etc.) is damaged or stolen. 

Also, if someone is injured at your place of business.

For example, say someone comes to do your podcast and they trip on a cable and hit their head. With this insurance, you’re protected.

And one last thing… if you’re hired by a company or brand to promote a product or do any sort of marketing or media work, you may be required to have some level of insurance before you can start work.

Professional Liability/Errors and Omissions

This is probably one of the most important for online business owners of any type.

It covers you for mistakes or oversights related to the content you produce (videos, podcasts, blog posts, etc.) and your advertising. 

Coverage like this is important because you are “putting yourself out there,” so to speak every day online.

That opens you up to liability for claims like trademark and copyright infringement, invasion of privacy, defamation, and the like.

For example, perhaps you mention a person in a bad light or say something that isn’t true (by mistake) during a podcast episode.

Generally, this is covered under your free speech rights.

However, that doesn’t stop that person from potentially suing you for defamation.

With this coverage, the insurer will cover your legal fees. 

In another potential case, say you make a recommendation in a blog post that turns out to be wrong.

An honest mistake, but somebody loses money or is otherwise harmed as a result.

This coverage will cover your legal fees and the other party’s damages.

Cyber Insurance

If you collect and process sensitive customer data, like credit card information, names, addresses, and the like, cyber insurance is a must-have.

This will cover you in the event that hackers steal that data and misuse it.

In other words, the insurance will pay out customers who lost money in such a breach… and cover your legal fees if you get sued.

This specialized coverage will also pay for any repairs or IT help you need to recover from this hacking.

Online Business Insurance Providers to Look Into

With the rise of online business and the content creation industry, many insurance companies have started to cater to this market.

Even some of the biggest brands in the insurance world offer coverage. 

But it is worth checking into some smaller, more boutique insurers that cater to the online business world.

They understand your needs in ways that the big-name companies just don’t.

Here are some insurers to consider:

Founder Shield

Founder Shield offers a whole category of coverage for what they call “Influencers and Content Creators.”

The creators of the company have a background in startups going back to 2012 and a focus on using technology to make insurance as streamlined and painless as possible.

They generally work with innovative companies that are “primed for growth.”

You can get more information here: https://foundershield.com/industry/influencers/

Insureon

Insureon works with small businesses and that includes those online.

It’s a marketplace, which means once you fill out an application, they connect with the best insurance company that will give you the specific coverage you need.

You can find more details on their process and the types of coverage offered here: https://www.insureon.com/media-business-insurance/social-influencers-youtubers 

Where to Go From Here

As with any insurance, you must be honest and open with your insurer.

If you misrepresent something on your application or file an inappropriate claim, an insurance company is well within its rights to not cover you, leaving you on the hook for any financial or other liability. 

In any case, this is not a matter to put off. Without adequate insurance coverage for your growing business, you could lose it all after just one lawsuit… even for something that is not your fault.