Offline Media versus Online Media Coverage

Most of the combined tech/media/eBusiness forms in the market limit their media liability coverage to “online” media. That is, they limit the coverage to liability arising out of the content on a Web site or used to run a Web site or other of the company’s operations (e.g., software) and content sent via the Internet (like e-mails). But more and more insurers are willing to add endorsements to their forms to extend such coverage to offline media—e.g., traditional forms of advertising, publishing, broadcasting, etc.

So, one of the questions that insureds and brokers alike should ask themselves when reviewing a quote for a combined tech/media/eBusiness policy is whether they want coverage for offline media activities. If so, they also need to understand what issues to look for when negotiating the various endorsements that insurers use for offering offline media coverage; as one might imagine, not all endorsements are created equal. Some of those issues are discussed below.

Interplay with CGL “Personal and Advertising Injury” Coverage

One of the issues that might drive an insured’s decision regarding the need to pursue offline media coverage is how the insured’s general liability program is structured. By “general liability” we mean commercial general liability, foreign general liability, and umbrella liability. These policies provide coverage for “bodily injury,” “property damage,” “personal injury,” and “advertising injury” (with newer forms combining the latter two coverages into “personal and advertising injury” coverage).

Several general liability insurers will put endorsements on their programs that bar all “personal injury” and “advertising injury” coverage from the program, because they don’t want any part of that risk, and know that the insured is buying separate coverage for “media liability” in some fashion or another. If an insured’s general liability program contains such an exclusion, then the insured should seriously consider seeking coverage for offline media in the insured’s combined tech/media/eBusiness insurance program. Also, care must be taken when doing this, because the tech/media/eBusiness policy, even when endorsed to
address offline media, might not cover all risks typically covered by the “personal injury” coverage of a general liability program. Accordingly, an insured might need to approach its general liability insurers and ask them to amend their “personal injury/advertising injury” exclusions so as to minimize gaps in coverage.