leveling-up your profession and transparency
Influencer marketing platform Tailify has joined forces with London-based insurance market Lloyd's in order to create a form of insurance specifically for influencers.
As more and more businesses leap into the space, influencers are finding themselves without any kind of legal protection in the midst of poor dealings and contracts. Lloyd's Coverholder, Assured Social, and Tailify have worked collaboratively to further solidify trust and reliability within the ever-expanding influencer marketing realm.
The coverage – underwritten at Lloyd’s of London through specialist insurer Beazley – supports Tailify’s mission to ensure influencer marketing is more professional, making the industry reliable and trusted by influencers and brands alike, as reported in The Drum.
Social media influencers are rapidly becoming one of the most valuable ways for brands to market their products. Business Insider forecasts the value of the global Instagram influencer market at as much as $8bn in 2019. Despite this, many influencers have no professional indemnity insurance to protect themselves when dealing with complex contracts and the obvious risk of breaches together with defamation and copyright related concerns.
Social media influencers have distinct and unique insurance requirements. Assured Social provides insurance policies which specifically offer the coverage they require, allowing a much lower premium than a standard Public Figure or Professional Indemnity insurance package.
Pricing starts at £120 for £100,000 of coverage.
Assured Social’s policies are available to all social media influencers, not just those registered with Tailify. Coverage is offered on a worldwide basis.
Fredrik Segerby, chief executive of Tailify, said, “We’re focused on building the most trusted, professional and transparent influencer platform in the market. Protecting both our influencers and advertisers is key to that ethos.” He added, “Although top influencers have tremendous reach and impact, they’re not legally required to be insured in the way that traditional businesses are. It leaves them open to being sued if contract obligations aren’t met, even due to an innocent mistake or misunderstanding. Even if they win in court, the legal battle can ruin them financially. Assured Social provides peace of mind for influencers, and confidence for advertisers.”
What is Indemnity Insurance?
Indemnity insurance is a contractual agreement in which one party guarantees compensation for actual or potential losses or damages sustained by another party. Most commonly, it is an insurance policy designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgmentHow Indemnity Insurance Works
Indemnity is a comprehensive form of insurance compensation for damages or loss and, in the legal sense, it may also refer to an exemption from liability for damages.Indemnity insurance, which is sometimes referred to as professional liability insurance, is a supplemental form of liability insurance specific to certain professionals or service providers (and that includes social media influencers). The professionals provide counsel, expertise, or specialized services. Indemnity insurance is unlike general liability or other forms of commercial liability insurance that protect businesses against claims of bodily harm or property damage.
Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client’s financial loss or legal entanglement. A client who suffers a loss can file a civil claim, and in response, the professional’s indemnity insurance will pay litigation costs as well as any damages awarded by the court.
(For example - When a social media influencer rendered his/her services on time, and delivered in full but the client (PR or brands) didn't compensate him/her - hence lost of income; based on the contract agreement).
As with any other form of insurance, indemnity insurance covers the costs of an indemnity claim including but not limited to court costs, fees, and settlements. The amount covered by insurance depends on the specific agreement, and the cost of the insurance depends on many factors including the history of indemnity claims.
Editor's Note: We all need any kind of insurance security in order for us to be protected for possible loss, inconveniences, and fraud. This is something we should consider having to promote professionalism and transparency.
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