HISCOX – Multimedia Liability Insurance (Publishing)

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Hiscox is a leading specialist insurer with roots dating back to 1901. For more than 40 years, Hiscox has provided insurance to US businesses through Lloyd’s of London, and since 2006 have expanded theirs local presence in the US.

Hiscox diverse portfolio includes media and entertainment, executive risks, financial services, professional liability, and property and specialty products like Terrorism and Kidnap and Ransom. Hiscox underwriting and claims teams provide flexible solutions designed to meet your clients’ evolving needs.

Multimedia Liability Insurance Claims scenarios Complex claims requires a clear strategy and an insurer on yourside. Hiscox specializes in Insurance for the media industry andour dedicated claims team specializes in the exposures that areunique to the media industry. We pride ourselves on handlingsensitive indemnity issues with professionalism and tact.
Multimedia Liability Insurance Claims scenarios Complex claims requires a clear strategy and an insurer on yourside. Hiscox specializes in Insurance for the media industry andour dedicated claims team specializes in the exposures that areunique to the media industry. We pride ourselves on handlingsensitive indemnity issues with professionalism and tact.

Hiscox Insurance Coverage

  • Book publishers 
  • Newspaper publishers 
  • Magazine/periodicals publishers 
  • Trade journal publishers 
  • Online publishers.

HISCOX – Multimedia Liability Insurance (Advantages)

  • Occurrence form 
  • Open perils form 
  • Worldwide coverage 
  • Coverage for content in any form including but not limited to, podcast, blog or mobile phone messages 
  • Acquisitions can be automatically covered 
  • Final adjudication fraud or dishonesty coverage 
  • Coverage for insured advertising of their own products and services.

HISCOX – Multimedia Liability Insurance (Benefits)

  • One comprehensive policy with optional coverages: — privacy and network security liability — technology activities — miscellaneous professional services — hacker damage (first-party loss). 
  • 25 years experience underwriting Media Liability worldwide 
  • Underwriting bench strength – lead underwriters with 20+ years 
  • Bold and creative underwriting solutions to meet even the most complex needs 
  • Admitted policy form; Hiscox Insurance Company Inc. is rated A (Excellent) by A.M. Best.
For more information, you can read or download below.

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Multimedia Liability Insurance Publishing With publishers constantly updating their methods of contentdissemination to ensure maximum global distribution, spanningradio podcast or newspaper to SMS news updates, contentproviders have never been more at risk.

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• Occurrence form• Open perils form• Worldwide coverage• Coverage for content in any form including butnot limited to, podcast, blog or mobile phone messages• Acquisitions can be automatically covered• Final adjudication fraud or dishonesty coverage• Coverage for insured advertising of their own productsand services.• One comprehensive policy with optional coverages:— privacy and network security liability— technology activities— miscellaneous professional services— hacker damage (first-party loss).• 25 years experience underwriting Media Liability worldwide• Underwriting bench strength – lead underwriters with 20+ years• Bold and creative underwriting solutions to meet even the most complex needs• Admitted policy form; Hiscox Insurance Company Inc.is rated A (Excellent) by A.M. Best.1• Book publishers• Newspaper publishers• Magazine/periodicals publishers• Trade journal publishers• Online publishers. AdvantagesBenefitsWho we cover Digital contentengagementincreased 18% inthe last year² Multimedia Liability Insurance — Publishers Policy overview

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CoverageCurrent? Hiscox Open perils’ protection (not just specificnamed torts) including, but not limited to traditional libel,slander, invasion of privacy, breach of confidentiality,copyright, trademark perils and also defamation, injuriousfalsehood, trespass and publicity rights violations.  Occurrence form coverage all media activities whichoccur during the policy periods, regardless of when the claim is made.  Claims brought anywhere in the world.  Plagiarism, piracy of breach or an implied contract touse a third-party’s creative idea.  Breaches of the scope of a license your insured hasacquired to use a third-party’s material.  Misappropriation of content, formats, characters,trade names, character names, titles, plots, musicalcompositions, voices, slogans, graphic material or artwork.  Negligence arising out of content.  Coverage for the insured’s disclosure of a trade secretwithin a newsworthy publication.  Costs of prosecuting your insured’s own declaratory reliefactions in the face of an infringement claim.  Content in any form whether it is on the internet, a podcastor mobile phone message.  Broad definition of media activities ranging from gatheringto exhibition of content.  Coverage for our insured’s website content and alsounauthorized access to this content resulting in a claim fordefamation, IP infringement, breach of privacy, outrage,infliction of emotional distress or negligent publication.  Use the checklist below to spot any gaps in your clients’ coverage. Multimedia Liability Insurance — Publishers Comparative checklist

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CoverageCurrent?Hiscox Insured’s negligent transmission of a computer virusor malicious code.  Coverage for your insured’s own advertising.  Carve back for fraudulent or dishonest conduct whereit has not yet been established by a final adjudication.  Affirmative coverage for punitive and exemplary damages(where insurable by law).  Duty to pay coverage with choice of defense counsel (withapproval, not to be reasonably withheld).  Prevent the insurer from forcing your insured to accept a settlement.  Enable your insured to:— settle within the retention— control decision to correct or retract content— protect anonymity of a news-gathering source— extend coverage to third parties including but notlimited to freelancers, correspondents, stringers,photographers, volunteers and ‘leased employees’,commissioned or engaged to provide media content— extend coverage for liability assumed under agreementwhere claims arise out of your insured’s content— extend coverage to past, present or future directors,officers, trustees, partners in, or employees— automatically cover new acquisitions with you to 10% of insured’s revenues.  Provide severability as to conditions of or obligationsunder the policy for persons or entities who are not boardmembers, executive offices, in-house counsel, or riskmanagers of your insured.  Multimedia Liability Insurance — Publishers Comparative checklist

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Multimedia Liability Insurance Claims scenarios Complex claims requires a clear strategy and an insurer on yourside. Hiscox specializes in Insurance for the media industry andour dedicated claims team specializes in the exposures that areunique to the media industry. We pride ourselves on handlingsensitive indemnity issues with professionalism and tact.

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What went wrong? A large reference-book publisher produces and distributes anillustrated biography of a famous American counterculture bandthat includes, according to the book’s jacket, “rare and unseenphotography” as well as “seminal posters, memorabilia, andephemera,” along with personal essays and a comprehensivetimeline of the band’s history. Included within the book’s historicaltimeline are seven reduced-sized images of concert postersfor which the publisher did not obtain reprint permission. The copyright holder sues the publisher for infringement,seeking an injunction against further distribution of the book, thedestruction of all unsold books, and actual and statutory damages.Following nine months of discovery, the publisher files a motionfor summary judgment conceding both that plaintiff owns thecopyright in the posters and that the publisher copied the workswithout authorization but contending that the use of the imagesin the book constitutes non-actionable “fair use” of the works. The outcome The trial court agrees and grants the publisher’s motion, concludingthat the book’s use of the copyrighted works was protectedbecause it was sufficiently transformative, made only minimaluse of the posters, and did not affect the market for the postersthemselves. On appeal, the judgment of the trial court is affirmed. Lossscenario Multimedia Liability Insurance — Publishers Copyright Infringement Defense cost payment$525,000Indemnity payment$0 Total loss$525,000

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What went wrong? The editor of a politically oriented gossip blog learns of an online diarywritten by an unidentified staff assistant who purportedly works in theoffice of an unnamed U.S. Senator. The diary, which is available on apublicly accessible Web site, contains detailed discussions of the staffassistant’s sexual activities, including intimate liaisons with a colleaguein the Senator’s office, who is identified by his initials (“S.R.”) andseveral physical attributes. The blog editor publishes an item revealingthe existence of the diary, quoting excerpts from it, and linking to theWeb site where it is posted. The resulting publicity causes the diary’sauthor to reveal her identity.S.R. sues the diary’s author for invasion of privacy based on the publicdisclosure of private facts and intentional infliction of emotional distress,and he later amends his complaint to assert the same claims againstthe publisher and editor of the blog. The parties conduct nearly sevenmonths of discovery (including discovery motions practice) and engagein extensive briefing on issues relating to the blog’s potential liability. The outcome The court grants summary judgment for the publisher and editor of theblog on the grounds that the suit was time-barred by the applicablestatute of limitations. The plaintiff does not appeal. Lossscenario Multimedia Liability Insurance — Publishers Public disclosure of private facts Defense cost payment$325,000Indemnity payment$0 Total loss$325,000

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What went wrong? As part of its Internet-only content, available only to subscribers who havepasswords, a suburban newspaper publishes an online column called“Technology Investing.” The column regularly offers assessments of therelative value of stocks in tech companies. At the end of each column,in small type, is a disclaimer: “Technology Investing’ is not a substitute forindividualized financial advice. Readers should make personal investingdecisions based upon an independent analysis of value and risk or inconsultation with a professional adviser.” To attract subscribers to theWeb site, the newspaper promotes the column through “house ads” asa value-added feature. A reader who wants to become a more savvyinvestor sees an ad and subscribes so he can access the “TechnologyInvesting” column online. He makes investment decisions consistent withthe columns’ recommendations and analysis. In particular, the readerholds onto stock in a large software company when the price is droppingbecause of growth projections in the column that prove to be overstated.As a result, his shares lose value and he eventually sells at a significantloss. The reader sues the newspaper in state court for breach of contract,negligence, negligent misrepresentation, deceptive trade practicesand fraud. The complaint alleges that plaintiff relied on the columnfor research and information in making investment decisions and thathe followed the column’s advice believing he would realize substantialreturns on those investments. The outcome Following almost a year of discovery, the trial court grants the paper’smotion for summary judgment. The court holds that, because the columnis offered to the general public (albeit for a fee) and provides informationthat is not specifically tailored to the financial situation of any individualsubscriber, the First Amendment precludes liability for publication ofnondefamatory, negligently untruthful information. The plaintiff appealsthe decision, raising a variety of procedural and substantive objections.The appellate court affirms the summary judgment order and denies theplaintiff’s subsequent motion for rehearing. Lossscenario Multimedia Liability Insurance — Publishers Errors and Omissions Defense cost payment$630,000Indemnity payment$0 Total loss$630,000

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What went wrong? A former professional hockey player, whose nickname while playingwas “Gary Goon” (based on his reputation as an enforcer on the ice),files a lawsuit for misappropriation of his identity against the publisherof a comic book series that features a mobster character of the samename. The comic includes several other characters named afterhockey players and is heavily marketed to hockey fans, includingthrough game-night giveaways of hockey pucks emblazoned withthe comic’s logo. The outcome The parties engage in extensive discovery over the course of morethan a year, and the case proceeds to trial. After the jury returns a$24.5 million verdict for the plaintiff, the court sets aside the judgment,finding that the evidence presented was legally insufficient. On appeal,the state’s Supreme Court determines that, to succeed on such amisappropriation claim, a plaintiff must establish that the product“predominantly exploits the commercial value of an individual’s identity,”and it remands the case for a new trial. The jury in the second trial alsoreturns a verdict for the plaintiff and awards $15 million in damages.The publisher appeals again, and the state’s intermediate appeals courtaffirms, finding that, despite the fact that the book’s character bore littlephysical resemblance to the plaintiff, there was evidence to support aconclusion that the publisher intended to create the impression that theplaintiff was associated with the comic. Lossscenario Multimedia Liability Insurance — Publishers Misappropriation of name/likeness Defense cost payment$2,100,000Indemnity payment$15,000,000 Total loss$17,100,000

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Hiscox is a leading specialist insurer with roots dating back to1901. For more than 40 years, Hiscox has provided insuranceto US businesses through Lloyd’s of London, and since 2006,we have expanded our local presence in the US.Our diverse portfolio includes media and entertainment, executiverisks, financial services, professional liability, and property andspecialty products like Terrorism and Kidnap and Ransom. Ourunderwriting and claims teams provide flexible solutions designedto meet your clients’ evolving needs. Contact Information Insurance brokers are welcome to contact us. Two ways to find your regional contact: hiscoxbroker.com/contact-us Northeast646 452 2353Northwest415 814 1455Southeast404 410 2800Southwest213 412 1210Midwest312 380 5555 About Hiscox in the USUnderwritten by Hiscox Insurance Company Inc., a Chicago-based insurer, which is admitted or licensed to do business in all 50 states andthe District of Columbia. Coverages are subject to underwriting and the terms, limits, and conditions of an issued policy, and may not beavailable in all states. In the event the actual policy forms are inconsistent with any information provided herein, the language of the policyforms shall govern.Inquiries as to insurance or other products or services should be directed to an insurance agent or broker licensed to conduct business inthe relevant US state. Insurance agents or brokers should contact a Hiscox underwriter. 1 A.M. Best rating date as of October 23, 2014.2 Newspaper Digital Audience Hits New Peak, Newspaper Association of America; September 29, 2014 –

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