Social Media Influencer Business Insurance
Getting business insurance as a social media influencer is essential.
Social media influencers need to be protected against claims involving events like posting hidden ads, or making slanderous comments about a third party.
For instance, if your business makes a sponsored post with another company but fails to disclose it as an ad to the audience, it may have to pay damages for this hidden ad.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Social Media Influencer Business
General liability insurance is — generally speaking — one of the most important insurance policies for social media influencers.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
A standard general liability policy might not be enough to completely protect your business’s assets from the social media industry’s risks. Additional policies may be necessary to ensure more complete protection. Some of these include:
- Commercial umbrella insurance: To shield your business from any damages or legal fees that exceed the threshold of your primary policy.
- Data breach insurance: Provides protection against claims for damages from clients that have had their data stolen from you by hackers.
- Professional liability insurance: To protect you in event that a mistake you made causes someone else harm.
When looking for business insurance, there are two primary types of providers you can purchase from: online and traditional in-store ones.
While traditional insurers such as The Hartford are fine, online insurers are becoming more popular than their counterparts.
Online providers are able to provide policies catered to your business’s needs, but they can also do this faster and for cheaper than their in-store counterparts thanks to the help of AI and fewer overhead expenses.
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Cost of General Liability Insurance
On average, social media influencers in America spend between $350 - $900 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a social media influencer business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Social Media Influencer Business
Example 1: During a meeting at a potential client’s office, you accidentally spill coffee on her expensive laptop. General liability insurance would pay to replace the client’s damaged property.
Example 2: Another social media influencer sues you for slander and libel. General liability insurance would cover your legal defense and any required settlement.
Example 3: While touring a client’s place of business, you accidentally knock a customer over and she breaks an arm. If she decides to sue you for damages, general liability insurance would pay for your legal fees.
Other Types of Coverage Social Media Influencer Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Professional Liability Insurance
While you strive to satisfy both your clients and fans, there’s always a chance someone might decide you made a mistake that caused them harm. If a client or fan sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the camera equipment, computers, editing software, and other supplies you use to run your business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property.
Data Breach Insurance
This coverage — also known as cyber attack insurance — protects your business from liability if a cybercriminal hacks into your computer system, steals client data, and your clients sue you for damages. In the event of such a lawsuit, data breach insurance would cover your legal fees and any settlement payouts.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your social media influencer business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Social Media Influencer Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Due to the nature of the social media industry, you might not be obligated by law to possess insurance. However, given the risk of being sued that this industry involves, it would be sensible to acquire some nonetheless.
If you decide to buy some social media influencer business insurance, please note that it is best to buy it before your business begins to operate.
Not necessarily. Certain exceptions may be written directly into your social media influencer business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.