Scale Underwriting Services LLC, a managing general agent and a Founder Shield company, has launched media liability coverage for social media influencers and their agencies with up to $5 million in limits available.
The coverage is backed by specialist insurer Beazley PLC.
Scale Social covers U.S.-based influencers and agencies, particularly those with paid brand partnerships, from potential lawsuits involving their social media activities, the New York-based MGA said in a statement Monday.
The online policy covers influencers’ advertising, publishing and regulatory exposures.
Coverage also extends to influencers who promote goods without a direct contract with a brand if a party asserts there was a negligent or unflattering promotion.
Crisis management costs can also be covered under a sub-limit.
“The emergence of TikTok and other digital content platforms requires the insurance industry to think differently,” Christine McCarthy, underwriter at Scale, said in the statement.
The influencer marketing industry is projected to grow to $13.8 billion this year, according to the statement.
“As the power and value of the influencer industry rises, so does the scale of the financial and reputational risk,” Claire Templeton, media underwriter at Beazley said in the statement.