From TikTok and Youtube to Facebook and Instagram, influencers and bloggers are making exciting careers creating digital content for online platforms. As the sector evolves, the potential for increased earnings is impressive but it’s important to also consider the potential risks associated with being in the public eye.
When sharing reviews or advice influencers are exposed to liability claims including slander, defamation and copyright infringement. It’s important to understand what the risks are in this regard and how to protect your online presence that you have worked hard to build.
So if you’ve recently had a surge in subscribers and want to protect your online presence, read our influencer insurance FAQs and find out why it’s important to take out tailored cover.
HOW MUCH DO INFLUENCERs EARN?
Scroll through any major social media platform and you’ll be certain to encounter influencer generated content. Some of these posts will feature celebrities from the sport or entertainment world but over the last few years there has been a surge in influencers and bloggers from all walks of life offering tips, advice and sharing their lives with their audience. As their followers grow, so does their ability to influence and generate interest in a product or service.
By featuring or endorsing a particular item, influencers can impact consumers’ buying decisions. This makes it an increasingly popular marketing tool for many brands. Recommendations from influencers can carry more weight than advertising by the brands themselves because people trust influencers and can see products in use through their content.
It’s not just mega-influencers that draw attention, micro-influencers with a following of 10,000 or less tend to target a particular niche, focusing on a specific demographic or culture. Despite the smaller audience numbers, engagement rates can be quite high and the cost per post smaller making this an attractive option for some brands.
The amount an influencer earns can vary considerably depending on the number of followers, engagement rate and the type of partnerships they set up.
Here is an approximate guide to how much an influencer can earn (according to Influence.co)
– An influencer with 10K to 25K followers can earn on average €230 for a sponsored post.
– An influencer with over 100k followers can earn up to €4,500 per sponsored post.
– An influencer with 1 million followers can earn up to €23,000 for a sponsored post.
WHY WOULD AN INFLUENCER BE SUED?
With potential earnings like those listed above, a career as a social media influencer is certainly very attractive. Despite the impressive rewards, there are also some notable risks.
Influencers need to tread a careful path around issues such as copyright infringement for example where they post an unlicensed image or use music without permission to accompany their videos.
When creating sponsored content for brands things get even trickier. Your posts can expose your you and the brand you are working with to issues such as false advertising, defamation, or competitor disparagement. If you create a video promoting a product but forget to include #ad, you could be investigated by the Advertising Standards Authority for Ireland.
Falsely discredit a competitor product and you could face slander or libel proceedings. You could even be sued by your sponsor for breach of contract or reputational damage in the event of problems.
With issues such as these at stake many brands actually require social media influencers promoting their products to purchase liability insurance.
WHAT TYPE OF COVER DO I NEED AS AN INFLUENCER – AND WHY?
General liability insurance
As a starting point influencer will need a policy that provides general liability cover. This insures you against claims of loss or damage as a result of negligence. For example, it can protect you against claims that someone was accidentally injured while filming a video for your YouTube channel or shooting an Instagram reel.
Personal and advertising injury insurance
To protect against claims of infringed copyrights or reputational harm, social media influencers are advised to take out personal and advertising injury cover. This type of policy can help if you are accused of libel, slander, intellectual property disputes, or copyright issues.
Employer’s liability insurance
If your brand is big enough to justify employing staff, you should consider taking out employer’s liability insurance. This will help you pay compensation if an employee becomes ill or is injured in the course of their work for you as an influencer.
Cyber security insurance
Where online influencers store email addresses or other personal information related to their sponsors or audience, it is strongly recommended that they take out cyber security insurance. This type of cover can help to pay for costs related to cyber attacks, data loss, and cyber extortion.
WHAT HAPPENS IF I DON’T GET SOCIAL MEDIA INFLUENCER INSURANCE?
Without appropriate influencer’s insurance, you may need to pay for your legal defence in the event that a claim is brought against you. If the case succeeds, you may also be required to pay compensation costs, which can be hefty and could lead to significant financial problems.
CAN I CUSTOMISE MY INFLUENCER INSURANCE?
To protect against such eventualities, it’s a good idea to take out an insurance policy tailored specifically to the social media environment. For influencers today, this could include cover for everything from defamation to online disputes and product disparagement.
That means you’ll want to think carefully about the risks you face. Speaking to an experienced insurance broker, such as OBF Insurance, can help you decide which type of policy would benefit your business and how best to structure coverage so that it provides maximum peace of mind.
Get in touch now to find out how we can help by providing a custom influencer insurance policy that will protect your online presence, legitimize your professional endeavours, and help you attract sponsor companies.
Please note that all insurance cover recommended by OBF Insurance is subject to the usual terms, exceptions and conditions of the policy.
