What is Multimedia Liability?

Multimedia Liability


A key element included in a Cyber Liability Insurance policy is multimedia liability cover. An insured's multimedia content refers to productions, publications, broadcasts and communications through a website or marketing. Coverage extends to include negligence in respect of information and content contained within the internet site for innocent acts such as; Breach of Copyright, Defamation, Plagiarism and False/Misleading Advertising but can also extend to coverage third party deliberate 'hack attacks' on your website content.

Breach of Copyright/Intellectual Property Infringement

Having a website makes a company's information easily accessible to the whole world, therefore it increases the possibility of innocently infringing a competitor's electronic content. An example of this may be if one of your employees are updating your website and use an image which was taken from another website without their consent.

Defamation, Libel & Slander

Just because someone else wrote it, if it is on your website it could be your responsibility. For example, if you host a blog on your website, even if you didn't directly write the content on a blog post, you are still responsible and could be sued if a bloggers post breaches one of the above examples.

Social media sites expose information with little control, therefore your employees' activity on social media can trigger liability if your business is responsible for the sites.

Plagiarism

Similar to breach of copyright/intellectual property infringement, due to the public access to another organisations website activity, you may use your works/ideas on your website and pass them off as your own.

False/Misleading Advertising

If your website contained false or misleading content about your products or services, it could lead to losing the trust of your customers/reputational damage which can be much more damaging than the financial loss you will incur to repair the effects of the breach.

In the event that a claim was to occur, even if your organisation is innocent, it will still have to pay to defend itself and may even decide to pay a settlement. These defence and settlement costs can run into hundreds of thousands.

Multimedia liability cover also provides coverage for third party risk exposure, for example if a hacker gets into your computer system and causes defacement of your website. The information/reviews/comments that may be posted on your website could be breaching copyright, offensive, defamatory or false, however you would be legally liable even if it was not published by yourself as it is on your website.