Previously, we discussed possible liability for libelous statements made via Twitter and other social networks (see The Standard, Jan. 29). We defined libel as “a form of defamation, which is often defined by state law. In general, defamation is a false, [written] statement of “fact” that is disseminated with negligence or malice and hurts someone’s reputation.... The libelous or slanderous statement must contain a provably false factual assertion.” We pointed out that libel may be covered under a homeowners or umbrella policy as a form of personal injury. But what about online publishing – say, a blog in which you comment on current events and invite others to join the discussion? Transgressions there could go beyond the personal injury coverage contemplated by a homeowners or personal umbrella policy.
Accessibility is another issue. Once something is published online, anyone anywhere can access it, increasing the likelihood that potential plaintiffs will discover exactly what allegedly defamatory statements were made and by whom. The worldwide nature of Internet distribution could increase damages awarded in a successful suit. And even if the publisher wins a suit, defense costs can be significant.
The Communications Decency Act Since 1996, online publishers have been protected by the Communications Decency Act from liability for defamatory statements made by others on their Web sites. However, such publishers can be held liable for any content that they create.
defamation; invasion of privacy; plagiarism, piracy, and misappropriation of property rights; copyright infringement and infringement of title, slogan, trademark, trade name, or service name; and error, omission, misstatement, or misleading statement.
A typical media liability policy offers a minimum limit of $1 million and can run up to $100 million for larger companies. A $1 million policy generally has a deductible of $5,000 or higher. Premiums can be hefty, depending on coverage.
Media liability policies are not standard, so one insurer’s bells and whistles may be another insurer’s exclusions. Here are some features to look for
Anyone who publishes online – from large companies to homebound bloggers – is at risk of being sued for libel, invasion of privacy, or perhaps, infringement of intellectual property (IP). Small publishers and bloggers are likely more at risk than the larger publishers, as they have fewer resources to protect themselves – no legal department to review posts, no fact-checkers or editors – and they often operate under greater time pressures than those experienced in the world of written communication. The Internet demands instant input – tomorrow is too late to comment on today’s news.
Limited Liability Corporations (LLCs) A blogger may be able to protect at least some personal assets by setting up an LLC and running the blog under its auspices. This is a possibility that can be explored with a corporate lawyer. Even the LLC is likely to need insurance, however.
•;Worldwide;coverage;– ;online;pub-lications are available everywhere, and other countries may have more liberal libel laws than the United States, leading to suits from anywhere in the world;
Traditional media liability policies have been updated in recent years to encompass online distribution of content.
•;Occurrence;vs.;claims-made;–;an occurrence policy offers coverage even when a claim is made after a policy has expired. Under many of these forms, coverage is written on a claims-made basis. Features to look for include prior acts coverage, liberal claims reporting requirements, and an option for purchasing a reasonably long extended reporting period – three to five years;
A typical media liability policy includes coverage for libel, slander, and
Jann Browning, CPCU, ARM, is editor of The John Liner Review, a product of Standard Publishing Corporation.
•;Choice;of;counsel;– ;if;you;have;a;re-lationship with a law firm, it could be important to your peace of mind to be able to work with that firm.
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