In the fluid media landscape of the modern world no risk is more present than that of making an error. From digital agencies and advertising consultancies, through to traditional media concerns like TV, Radio, and Newspapers, making a mistake or omitting a critical component in a story can have major consequences. Especially when those mistakes, omissions, or errors, occur on a visible platform.
Errors and Omissions insurance, also known as Professional Indemnity Insurance or Professional Liability Insurance, is designed to protect organizations against claims which alleged a serious mistake or error has occurred to the detriment of a client or 3rdparty.
Most insurance companies offering Professional Indemnity insurance for the media industry will provide coverage against a wide claims definition with coverage between US$500,000 and US$15,000,000 available.
It is important to note that Professional Indemnity claims for the media industry will not relate to bodily injury. In this industry an Errors and Omissions insurance claim will relate to reputational or financial losses suffered by a client of 3rdparty due to a mistake made by a media company.
Many Media E&O Insurance solutions will actually allow a media business to obtain a single policy which will cover all their locations and employees worldwide. This ensures streamlined claims handling and simplified crisis management for the entire company. And many policies will also provide continuity and reinstatement benefits for organizations whose Professional Indemnity cover may have lapsed.
For more information please click Corporate Professional Indemnity Insurance.
As an agency, you are contracted by a customer to develop a new website platform for their retail store. Unfortunately, the code in your website is faulty and a rounding error in the payment utility has caused the customer a significant financial loss. The customer then starts a legal action against you claiming that your negligence in properly coding the website has resulted in damage.
A media professional indemnity insurance policy would help the agency fight the negligence claim and settle any resulting judgment in favour of the client.
While news outlets and reporters make every attempt to ensure that their facts are correct before publishing a story mistakes can happen. Unfortunately, due to the visibility of these mistakes and factual errors the damage done can be much larger than with a private company and client indemnity issue.
For example, a journalist publishes an article alleging that a politician has criminal business dealings and is corrupting the government. The politician in the article claims that an error has been made in the piece and sues the news organization for defamation and slander.
A news professional indemnity insurance policy would ensure that the publisher is able to fight the claim and will be able to cover any judgment in favor of the politician.
If you are a media company or publisher and are considering your current professional indemnity exposure, or if you would like to investigate alternative solutions to an existing professional indemnity insurance policy, please Contact Us to arrange a free no-obligation, no-risk consultation with an expert CCW Global insurance broker.
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