Insurance is one of those ~ugh, annoying~ adult things. On a personal level, you’ve got health insurance, car insurance, home insurance, life insurance… you name it. On a business level, there’s property insurance, professional liability insurance, workers’ comp insurance… the list continues for days.
So you get the point: The world of insurance is complicated and overwhelming, and many of us would rather not deal with it.
But insurance is super important, especially when you’re operating your own business. If you make money on YouTube or through social channels, it might be time to look into a newer form of insurance called influencer insurance.
“There are lots and lots of different things under professional indemnity that an influencer now is specifically covered for and need protection for,” says Matt Newman, CEO and founder of Influencer Protect, a UK-based brokerage that specializes in insurance for influencers.
Personally, I’m a huge proponent of insurance — making sure you’re covered in any worst-case-scenario situation — taking this step is really what separates the YouTube hobbyists and wannabes from the pros, like us.
So I chatted with Matt, who’s a real pioneer in this space, and picked his brain on influencer insurance: What it is, what it covers, who needs it and how much you need.
And just in case you think I don't practice what I preach, Matt has since sorted all of my haywire insurance policies
Resources Mentioned In This Episode
- Influencer Protect - YouTuber insurance for both UK and US based influencers. Make sure to tell them you came from this Podcast
The YouTube easter egg from the start of today's episode is this little gem.
The Pro Channel Manager Academy is our incredible community full of incredible video courses and some of YouTube greatest minds to help you grow the YouTube channels you are working on.
A HUMUNGOUS thank you to our incredible sponsor and my favourite YouTube tool vidIQ. I use it on every single video I upload and has helped me generate BILLIONS of YouTube views. Get a free trial of one of their incredible paid plans by clicking here.
What Is Influencer Insurance?
Before we dive too deep on this topic, let’s first answer: What is influencer insurance? Or, you might also call it YouTuber insurance or social media insurance.
It might sound silly at first, but influencer insurance helps protect, well, influencers — or really anyone in the spotlight (e.g. comedians, pro sports players, actors, radio personalities) or anyone who works in the media space.
Think about any other business. Most of them have some form of insurance to protect them from various worst-case scenarios — an injury, property damage, lost income, etc.
Although you might not consider your handiwork on YouTube a business, it is — especially if you’re making money or working with clients or sponsors.
What Does Influencer Insurance Cover?
To better understand influencer insurance, here are some examples of situations it can cover:
Defence costs, damages and compensation payments
Unintentional breach in advertising laws (e.g. not using #ad)
Breached contracts with sponsors
Really, the list goes on, and you’d be surprised how often these things can happen.
“There are so many different aspects to this,” Matt says. “And this is why the policy is so specific for influencers because this wouldn't fit with any other industry.”
Here’s an example of a time influencer insurance might come in handy: You’re working with Coca-Cola, but you recently uploaded a YouTube video, which shows you casually sipping on a Pepsi (other Cola brands are available ). Even though this was a mistake, Coca-Cola could issue you a breach of contract claim.
That’s where influencer insurance can help cover the legal expenses and, if you’re found guilty, help cover the settlement amount.
Here’s another example: Let’s say you upload a product review on YouTube. In that review you make an unsubstantiated claim about the product and why it’s terrible.
Sure, you can issue a correction and apologize, but if you have a large following, the company could very well sue for libel. Influencer insurance would help cover any legal costs associated with the fiasco. And both legal and settlement costs could mount up to MILLIONS. Do you have that sitting in a bank account somewhere waiting for the rainiest of days?
Who Is Influencer Insurance For?
Again, you might not necessarily consider yourself an influencer — or even a business — but if you’re making any sort of money on YouTube, influencer insurance could benefit you.
“What we have found is that influencers don't look at themselves as a business risk,” Matt explains. “In my eyes every single influencer needs insurance because they're looked at as a business.”
Here are some instances where you’d want to consider influencer insurance:
If you’re running a YouTube channel full time
If you’re working with brands or have third-party contracts
If you’re running a business as a YouTube consultant or freelancer
As you can see, influencer insurance isn’t just for influencers — the face in front of the camera. You can still benefit from this type of insurance if you work behind the scenes as a YouTube consultant, freelance editor, graphic designer or producer.
If it helps, you can also think about this in more general terms, like social media liability insurance, media insurance or even just professional liability insurance.
How Much Influencer Insurance Coverage Do I Need?
Again, it’s no secret insurance can get pretty tricky, but that’s why working with an insurance brokerage can be beneficial.
Matt, an influencer insurance broker himself, breaks down exactly what he thinks about when recommending coverage for his clients:
Number of subscribers
Coverage level (Do you want $250,000 in coverage or $2 million in coverage?)
Type of influencer (A YouTube prank channel would probably need more coverage than, say, a beauty vlogger.)
If you’re curious about how much this all costs, Matt throws out an estimate: Say you’ve accumulated 25,000 followers and you want premium coverage, Matt estimates you’d pay somewhere around 50 pounds a month for influencer insurance. (Note: I personally pay around that for my monthly insurance but yours may vary depending on circumstance)
On the other hand, if you’re super high profile, then a policy could run more than 10,000 pounds a year, because the legal costs behind the claim would be much higher.
However, keep in mind, this coverage could translate to millions of dollars in legal coverage down the road.Ultimately, whether you’re in front of the camera or not, influencer insurance — or any kind of professional liability insurance — is an important part of running a business, and it’s essential to make sure you’re covered just in case.
Never miss a single episode of the podcast and be the first to hear about our new courses and community updates by signing up for updates