Do Independent Contractors Need General Liability Insurance?

You know you have a ticking bomb in hand if you handle social media for your business or your clients! Indeed, it is easy to attract libel and slander lawsuits and more if you make one wrong move over social media. These lawsuits can jeopardize your business continuity plans if you do not invest in a good general liability policy. And that’s why this article will tell you everything about how general liability insurance protects you from social media risks!

How General Liability Insurance Protects You From Social Media Risks?

Social media is an extremely sensitive place and, if mishandled, can result in million-dollar lawsuits. And this is precisely the reason you need to have social media liability coverage. So, let us learn about social media liability coverage and how this coverage protects you from social media risks!

#1: Libel

Libel is when you issue something inappropriate in written form from your social media handles.

A good example can be, you wrote that your competitor brand lacks a particular feature from your Twitter handle. This tweet can damage your competitor’s reputation, and thus they can sue you.

Social media liability covers you in this case and provides you with the legal costs, settlements, and judgments.

  • What Is General Liability Insurance? And How Much Of It Do I Need?

#2: Slander

Slander is when you say something inappropriate in spoken form from your social media handles.

An excellent example is, you say something inappropriate about your competitor through your YouTube channel. Such videos could damage your competitor’s reputation and result in a hefty lawsuit.

But proper general liability coverage can help you make it through the stormy waters!

  • Do Independent Contractors Need General Liability Insurance?

#3: False advertising

False advertising is when you put forward misleading, unproven, or untrue information in a promotion.

For example, you promote a protein shake as a magical drink that will give you the perfect body within five days. Easily, it is not possible, and in fact, your consumers can sue you due to your false claims.

Another method of false advertising is exclusivity claims. Exclusivity claims mean to portray yourself as the one and only source of a product or service when you are actually not.

Like, you might say, you are the only producer of encyclopedias. But in reality, many others make encyclopedias.

#4: Copyright Or Brand Infringement

Copyright or brand infringement issues occur when you use somebody’s copyrighted work without permission. An example is when you publish a photo on your social media that was copyright protected without the owner’s permission.

#5: Privacy Invasion

Say you use your client’s data without prior information, like posting your client’s pictures on your FB page without their permission.

#6: Breaches Of Contract

Breach of contract is straightforward. When you do not deliver on the contract terms, it is a breach of contract.

How To Avoid Social Media Mishaps?

Prevention is better than cure!

Therefore, it is better to avoid social media mishaps than waste your time in lawsuits and claims. Here are a few steps you can take to prevent the accidents in the first place,

#1: Put In Place A Social Media Policy

Create clear guidelines on what is acceptable and unacceptable on your social media handles. And make sure all your employees understand and follow the guidelines.

#2: Perform A Fact Check Before Posting

Check all the facts you are posting about anybody. Be sure, or it might backfire!

#3: Schedule And Time Your Updates

Do not overwhelm your audience with too much content in a single day and neither dry them up with no updates for a month. A schedule can help keep things running smoothly.

#4: Drive Engagement Thoughtfully

Social media is not for selling but for conversations that establish your brand. Thus, write meaningfully and thoughtfully over your social media.

#5: Prioritize Security

Have strong passwords. I can’t emphasize this enough. With hacking gimmicks becoming popular, prioritizing security is crucial. Also, change your passwords frequently.

#6: Check Copyright Over Images Before Posting Them

Copyright images are a big no! Instead, you can sign up on a stock photos website, click for your own, or search for royalty-free photos. All these steps can go a long way in keeping you free from unnecessary trouble.

What Are The Factors That Determine The Cost Of Your Policy?

The average spending of a social media marketing business in the US for a $1 million cover of a general liability insurance policy lies between $350 – $900. And indeed, it is a great deal. It is not a high price to stay protected and operate with confidence. Purpose of business Insurance and what does it cover?

The above premium range is just the average price, but your exact premium will depend on various factors like,

  1. Location
  2. of employees
  3. Deductible
  4. Per-occurrence limit
  5. General aggregate limit, etc.

Note: You can get the policy for relatively less if you club it with other policies under the Business owner’s policy! Some other policies you might need are mentioned below.

Other Types Of Policies That You Might Need!

#1: Professional Liability Insurance

It is also called the Errors & Omissions Policy. If you leave a mistake in your work, this will be your savior sent from above.

#2: Workers’ Compensation Policy

Workers’ Compensation Policy helps you get coverage for lawsuits involving employee injuries.

#3: Commercial Property Insurance

If you have office space, you must consider this insurance policy. If anybody trips on your property, you would be covered for their medical costs and worse.

#4: Commercial Umbrella Policy

An umbrella policy is bought as a topup for a liability policy. If you have professional or general liability policy but do not find the policy limit enough, consider purchasing an umbrella policy for them.

#5: Commercial Auto Insurance

If you or your employees use a vehicle you own for business purposes, consider buying this policy. If any accident occurs, you will be provided with what may come.

In A Nutshell…

It is evident how general liability insurance protects you from social media risks. It helps you walk confidently in this very sensitive zone.

The primary purpose of insurance is to protect you and provide you with mental peace, and social general liability coverage does precisely that. Whether you are a social media marketing firm or a business that handles social media, you must consider buying this coverage. But it is essential to assess the risks accurately. After all, we are here to save money, so going overboard for this coverage is also not advisable. Also, underinsuring is not a very good place to be in. Therefore, play smartly and buy only coverages and policies that you really need.

With this, I wrap up and hope that the information was helpful and solved your queries. But if anything is still buzzing your mind, please comment below! I am all ears!

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