Media Liability Insurance
Media Liability Insurance, which protects the insured against claims arising out of the gathering and communication of information, is critical to any media organization. The variety of claims being asserted against the media, and the size of jury verdicts against media organizations, are constantly on the increase. According to data released by the Libel Defense Resource Center, the median jury award against media organizations in 1990 was $500,000; in 1997, it was $2.3 million.
Although the First Amendment provides important defenses to the news media, the costs of vindicating those defenses in court can be staggering. In addition to defense expenses, jury awards against news organizations can be significant, and the size of the average award is increasing. According to the Libel Defense Resource Center, in 1990, the median jury award against a news organization was $550,000; in 1997, it was $2.3 million.
A sound media liability insurance program is therefore essential. Executive Risk's Media Liability products have been crafted by, and individual accounts will be underwritten by, experienced First Amendment counsel familiar with defending media claims and with counseling media clients on methods of avoiding media claims before they occur. Executive Risk currently offers two new products providing state-of-the-art media liability coverage: NewsMediaSM Liability Insurance, which provides coverage tailored to the specific insurance needs of news organizations, and Multimedia Liability Insurance, which provides media coverage for virtually any class of media business.
NewsMediaSM Liability Insurance
It's better to evaluate your coverage in the boardroom than in the courtroom. Consider the following protection features.
Comprehensive coverage. By not limiting coverage to "named perils," as traditional Media Liability policies do, our policy provides comprehensive coverage for risks arising out of the core functions of news organizations: gathering and communicating information to the public.
- Subpoena protection. Coverage for the legal costs of challenging third-party subpoenas is included. According to the Reporters Committee for Freedom of the Press, as many as 3,500 subpoenas a year are served on media organizations, resulting in a significant burden and expense.
- No Fraud or Dishonesty Exclusion. We recognize that some purely legitimate news-gathering activities can involve an element of deception -- for example, the "consumer protection" reporter who poses as a customer to investigate possible fraud by a merchant.
- Multimedia coverage for media conglomerates that applies regardless of the form or medium of communications giving rise to a claim.
- No Settlement "Hammer" Clause gives the insured absolute discretion, with no limitation on available coverage, to reject a settlement offer in cases where the insured believes the principle at stake is too important to compromise.
- No exclusion for "internal" copyright disputes, protecting the insured in cases where, for example, an employee or freelance writer prepares material for the insured but claims he or she only granted the publisher the right to publish his or her work in print, not to republish it electronically.
- Protection for confidential sources and other information. This policy expressly preserves the insured's right to maintain the confidentiality of unpublished news gathering information, regardless of the resulting effect on litigation.
- Choice between Indemnity and Duty to Defend. The insured has the option -- on a claim-by-claim basis -- to select counsel and retain control of the defense of a claim (or response to a subpoena) or to assign the duty to defend to the insurer.
- Punitive damages are covered, where insurable by law and where conduct giving rise to damages is not otherwise excluded (such as fraudulent conduct).
- Worldwide coverage. Reflecting the global nature of communications, this policy covers acts occurring or claims asserted anywhere in the world.
- Occurrence Form. Executive Risk's News Media Liability Policy is written on an occurrence form, covering all media activities occurring during the policy period, regardless of when the claim is first made.
Multimedia Liability Insurance
It's better to evaluate your coverage in the conference room than in the courtroom. Consider the following protection features.
- Comprehensive coverage. By not limiting coverage to "named perils," as traditional Media Liability policies do, our policy provides comprehensive coverage for risks arising out of the core functions of media organizations: gathering and communicating information to the public.
- Multimedia coverage for media conglomerates that applies regardless of the form or medium of communications giving rise to a claim.
- No Settlement "Hammer" Clause gives the insured absolute discretion, with no limitation on available coverage, to reject a settlement offer in cases where the insured believes the principle at stake is too important to compromise.
- No exclusion for "internal" copyright disputes, protecting the insured in cases where, for example, an employee or freelance writer prepares material for the insured but claims he or she only granted the publisher the right to publish his or her work in print, not to republish it electronically.
- Protection for confidential sources and other information. This policy expressly preserves the insured's right to maintain the confidentiality of unpublished news gathering information, regardless of the resulting effect on litigation.
- Choice between Indemnity and Duty to Defend. The insured has the option -- on a claim-by-claim basis -- to select counsel and retain control of the defense of a claim or to assign the duty to defend to the insurer.
- Punitive damages are covered, where insurable by law and where conduct giving rise to damages is not otherwise excluded (such as fraudulent conduct).
- Worldwide coverage. Reflecting the global nature of communications, this policy covers acts occurring or claims asserted anywhere in the world.
- Occurrence Form. Executive Risk's Multimedia Liability Policy is written on an occurrence form, covering all media activities occurring during the policy period, regardless of when the claim is first made.
Source, Chubb Insurance Company
NewsMedia are Serial Marks of Chubb & Sons