Liability insurance: Defending yourself when there's no corporate ownership safety net

Media companies have relied on insurance policies to pay for legal defense fees in libel and invasion of privacy lawsuits for years. Most digital journalists, however, cannot afford to pay out of pocket the hundreds of thousands of dollars that lawsuits can cost. And as web reporting proliferates, online content providers are starting to make easy targets for plaintiffs, particularly those looking to suppress speech they don't like.

The Media Bloggers Association has taken the lead in identifying this trend and encouraging bloggers and other web-based writers to protect themselves in the case of a lawsuit; the New York-based organization created a program to educate digital journalists about their legal rights as writers and provide insurance targeted directly at them. The basic policy costs $540 a year, but certain factors can raise the price. The MBA web site provides more information, including details about the scope of coverage. In addition, the Online Journalism Review has an extensive guide to insurance for online publishers, including a chart with contact information for the major insurers that offer products to cover media liability.

Homeowner's and renter's insurance policies provide a slightly cheaper alternative than these policies, which generally have minimum annual premiums of $2,500 for a $1 million limit, with a minimum deductible of $5,000, according to the Electronic Frontier Foundation. Many homeowner's and renter's policies include an option to purchase additional coverage beyond the baseline policy that would pay the cost of defending personal injury lawsuits, including libel and slander claims, brought against the policyholder. The cost of this extended coverage can range from around $10 to $300 a year and provide anywhere from $100,000 to $5 million in liability coverage, depending on various factors, including the type of policy, state in which it is purchased and insurance provider. Generally, the two policies that provide increased coverage are endorsements and umbrella policies. 

Homeowner's and renter's policies have limitations, namely that they only cover lawsuits brought against digital journalists who receive no income from their sites. Once a blogger or other web-based writer starts to make money from his or her online publication, it turns into a business, which is not protected by homeowner's or renter's policies.

In this instance, a policy through the MBA or private insurance company may be well worth the additional money. If you are unsure about what type of insurance would be right for you, the Citizen Media Law Project has developed an interactive question tool to help evaluate your particular needs.