What is Content Liability and How Does it Apply to Cyber Liability

By: Keith Goodwin, Capstone Brokerage Risk Manager, May 2014

Cyber Liability is becoming extremely important for all businesses. The way we do business has changed drastically over the past decade. Doing business now requires company’s to have websites, Facebook pages, LinkedIn Accounts and blogs. All of these examples leave a company at risk for data breaches and content liability.

Content liability once only pertained to printed documents, letters, flyers etc. Prior to the internet it was especially important for publishers and broadcasters to have a content liability policy. Now in the digital age the need is there for all types of businesses. It is smart to obtain Cyber Insurance with Content Liability if a business operates at all online. Content and Media Liability provide valuable coverage against defamation and invasion of privacy on Facebook pages, LinkedIn accounts and company blogs. Website media liability is a part of cyber liability that covers slander and copyright infringement from your company website.

The internet has opened up a new forum for business to be weary of. The openness of the Internet means that some users may post content or engage in activity that is unlawful or otherwise offensive. Liability for online content can arise in a number of situations both legitimate and politicized including defamation, obscenity, invasion of privacy, intellectual property infringement, or because the content is critical of the government.

Perhaps an employee writing a blog may have a personal opinion that does not portray the opinion of the company as a whole or if the blog allows comments on posts and a cyber argument breaks out which can become a potential risk for a business. Both situations can cause harm to the company’s image. Content liability would be used in these situations to help resolve this issue. It could cover the cost to send out material apologizing for the content or pay for actions needed to fix the situation.

Any of the events covered by traditional content publishing laws can occur on the internet. If someone plagiarizes things from your website or uses information to harm your company, having cyber insurance with content liability would greatly benefit you in these situations. Standard content liability riders typically do not apply to the cyber world. Remember anything not tangible to a business makes it cyber.

Companies that have a website, blog or social media accounts are at risk for content liability. All companies should have a cyber insurance policy in place if they operate using a computer. Your privacy can be invaded through a social media posting or your company’s product can be smeared on a message board. This can cause commercial damage to your company.

For small and medium-sized businesses there are very simple policies available, but sometimes these raise more questions than answers as they do not always provide a long list of exclusions or terms and definitions. Maintaining a relationship with a knowledgeable insurance broker will prove to be beneficial. If you have any questions regarding this topic feel free to contact me at keith@capstone1.com