Insurance for Youtubers: What Content Creators and Influencers Need to Know About Insurance Coverage

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This article will cover the main insurance coverage for YouTubers, general liability insurance, and suggest other policies that are suitable for this business.

General Liability Insurance For Youtubers

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defence and judgment
  • Personal and advertising injury

While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totalling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

COMMON SITUATIONS THAT GENERAL LIABILITY INSURANCE MAY COVER FOR A YOUTUBER BUSINESS

1. Your video content is similar to that of another content creator, and they decide to sue you for copyright infringement and lost viewership. General liability insurance would likely cover the costs if you choose to fight the claim in court.

2. One of your viewers feels slandered by your content, and they file a claim against you for personal damages. General liability insurance is likely to pay for the legal costs to either settle or fight the claim.

3. You have a guest host come to your recording area for a special session. When they leave, they trip over a cord that was left in the walkway. General liability insurance would likely cover the costs of any medical expenses that result from the fall.

Cost Of General Liability Insurance

On average, YouTubers in America spend between $350 – $900 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Other Types Of Coverage Youtubers Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all YouTubers should obtain:

Commercial Property Insurance

If you own a recording studio for your YouTube business, you’ll need commercial property insurance to cover any damages that occur from natural disasters, vandalism, or fires. This insurance covers your commercial equipment (e.g., cameras, lighting), as well as the physical structure of the property.

Professional Liability Insurance

If you give professional advice on YouTube, you’ll need professional liability insurance in case you make an error or omit important information that affects your viewers in a negative way. This insurance is designed to cover any formal claims against you if someone believes they suffered a loss due to your content.

Home-Based Insurance

Home-based insurance is available to cover your commercial equipment and space if you operate your business from your home. A typical renters or home insurance policy is unlikely to cover commercial expenses you may incur in the course of home-based business operations.

Types Of Coverage Some Youtubers May Need

In addition to the policies outlined above, there are a few other types of coverage your YouTuber business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Commercial Umbrella Liability Insurance

This insurance is available to supplement a general liability policy once it reaches its limits. A general liability policy has financial limits placed in terms of how much a business owner can receive (e.g., $50,000 for legal expenses). Umbrella insurance will continue to pay above and beyond in case a serious lawsuit is filed against you.

Workers’ Compensation Insurance

Most YouTube businesses start as one-man shows, but you’ll need workers’ compensation insurance if and when you officially hire a part-time or full-time employee. This insurance covers all employees from accidents or injuries while on the clock. You will not need workers’ compensation for contracted employees.

Summary

Content creators and influencers have certainly carved out a unique and interesting career path for themselves—one that didn’t exist a decade or so ago. From inking lucrative brand partnerships promoting products and services to spending their days exploring the globe on the dime of destination marketing organizations and travel companies, the influencer space shows no signs of losing steam.

In fact, the opportunities for these social media celebrities and talented content producers have multiplied exponentially amid the COVID pandemic thanks to millions of people being stuck at home and forced to find most entertainment online. A recent Forbes article noted that the influencer marketing industry is expected to grow to a staggering $13.8 billion in 2021. That’s a gigantic increase from the $9.7 billion that the industry was worth in 2020.

But with all of this opportunity and income, influencers and content creators must also take the time to manage their financial and business affairs. With many in this line of work functioning as freelancers or sole proprietors, this task will likely include securing their own insurance, from health insurance to travel insurance, and even liability and life insurance.

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2 Comments

  1. […] State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify. […]

  2. […] Insurance for Youtubers: What Content Creators and Influencers Need to Know About Insurance Coverage […]

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