What is social media influencer insurance?

In the third generation of the internet, also known as web 3.0, personal profiles have taken centre stage, ushering in a new era where anyone can become an influencer.

As social media platforms proliferate and content creators saturate our feeds, it is imperative for content creators to think about how to best protect themselves.

Danish Yusuf (pictured), founder, and CEO of Zensurance, spoke with Insurance Business on the importance of social media influencer insurance and discussed how internet personalities can protect themselves against the risks inherent in content creation.

Why is social media influencer insurance important?

The potential enactment of a TikTok ban by President Biden highlights the need for social media insurance, shedding light on the unpredictability of the landscape.

Yusuf pointed out that, currently, there are no business interruption policies available in the market to cover the scenario of a social media platform being banned.

However, there are still steps influencers can take to shield themselves from the various risks linked with content creation. These include professional negligence, third-party injury or property damage, and cyber-related incidents.

Providing further examples, Yusuf said: “For influencers, the types of coverages we’re talking about are libel or slander. I can be a TikTok influencer and put a company down and they could come after me for libel. Copyright infringement is another concern, I might inadvertently put up some pictures or videos, where I’ve used somebody’s music or somebody’s picture without their permission, and I can get sued for that.”

Who is influencer insurance for?

Yusuf suggested that individuals who earn income through their social media profiles should consider obtaining a social media influencer policy. Typically, those who opt for these policies include bloggers, podcasters, YouTubers, and celebrities.

He also emphasized that such coverage is particularly beneficial for influencers with a substantial follower base and those who have built their personal brands by sharing more provocative or controversial viewpoints.

“Naturally, the larger you are in terms of your number of followers, the higher your risk. Another factor to consider is ‘how edgy am I’? For a lot of influencers, that’s their brand. Depending on where you land on those two, it’s a judgement call for how much coverage you may want,” said Yusuf.

Yusuf highlighted that social media influencer insurance might be of particular interest to content creators who specialize in product recommendations and reviews.

“Let’s say the product you recommended fails, there’s more cases of people also naming influencers in claims, not only the manufacturer or the retailer,” he said.

“As more people are reviewing products and people are relying on influencers, their scope of impact is much bigger,” added Yusuf.

To ensure adequate protection, Yusuf said social media influencers should look to get both professional liability and general liability coverage.

Looking ahead for social media influencers

Speaking on trends that will shape the future of influencer insurance, Yusuf believes social media platforms will soon offer creators insurance.

“If I am a producer of a certain level on TikTok, it’s only a matter of time before they offer me the ability to buy insurance that’s reviewed by them,” he said. “Amazon does the same. If you have above a certain amount of revenue, they require you to have insurance.

“So, the big social media platforms, they are going to get into this space too because they can get sued.”

For now, the biggest risk within the industry, is influencers feeling like they don’t need coverage, something Yusuf hopes will change.

“We’ve spoken to many people who will say, ‘I’m just on TikTok’, or ‘I just go to restaurants and review them’,” he said. “That’s the biggest risk for this profession, feeling like they don’t need insurance.

“Even if it’s just a small amount of coverage, influencers should consider it. You’d rather have $100,000 of coverage than no coverage.”