Broadcasters Liability Insurance

Broadcaster liability insurance protects radio and television stations from allegations of wrongdoing. This does not shield you from online defamation unless you publish relevant articles.

BREAKING DOWN Broadcasters Liability Insurance

Broadcasters liability insurance protects individuals and firms in the broadcasting sector from the significant costs associated with defending themselves and the company in the event of a lawsuit, as well as paying any judgment the court directs if the plaintiff prevails. This insurance is a type of mistakes and omissions insurance.

Radio and television broadcasters face a higher than average number of liability risks due to their work as reporters, investigators, and commentators, including claims of privacy invasion, accusations of defamation and product disparagement, and causing undue emotional stress on their subjects. The industry's requirement to function quickly while still providing explosive, attention-grabbing tales and excitement may make broadcasters more prone to error. Furthermore, there are several federal rules set by authorities such as the Federal Communications Commission that, if violated, can result in costly fines. One common example is the use of vulgar language on the air. Broadcasters may also face penalties and litigation for allegations of plagiarism, breach of confidentiality, improper use of trademarked or copyrighted information, or false reporting.

In addition to liability insurance, broadcasters will want property insurance to cover the expensive equipment required for operation, such as antennae, towers, vans, helicopters, and cameras.

Examples of Broadcasters Liability Insurance

Broadcasters liability insurance provides coverage in a variety of situations. One possible scenario is a radio station running a contest in which the winner receives tickets to a sold-out event sponsored by the radio station at a local venue. During the event, the winner dies, and the family sues the radio station for wrongful death. In this situation, broadcasters' liability insurance pays for court fees and any damages granted to the victim's family.

Another reason a firm may get broadcasting liability insurance is to protect itself from defamation claims. If, for example, a news broadcaster falsely reported on air that a candidate for office had been investigated and fired for sexual harassment, the subject of the story could sue, alleging reputational loss and emotional distress. If the jury ruled in favor of the plaintiff and awarded punitive damages, the broadcaster's liability insurance would either pay or significantly reduce the expenditures incurred during the trial, including damages.