Copyright infringement insurance

Often part of a general liability insurance policy, copyright insurance protects small business owners against lawsuits over unauthorized use of another company’s trademarks or copyrights.

Let’s pretend you posted an image to your small business’s social media account without getting permission from the photographer. Or the song in your newest commercial was used without the artist’s consent. Unauthorized use of copyrighted materials can result in copyright infringement claims. If the photographer or artist were to file a lawsuit, your small business could be facing thousands of dollars in legal costs, rebranding expenses, and confiscated materials.

Thankfully, copyright infringement insurance can help cover the costs incurred, should your small business end up on the wrong side of a lawsuit.

Copyright infringement lawsuits occur when you use another company’s trademarked intellectual property—or create something substantially similar—without their permission, to promote your own business. This could include:

• Company and product names
• Branding, such as logos, color schemes, and web design
• Slogans and taglines
• Photography
• Music
• Social media posts

Copyright infringement claims often come from larger companies who aggressively protect their brand after spending a lot of time and money establishing themselves. These companies have the resources and legal teams to closely monitor trademark and copyright applications, while also searching for new businesses with similar names, logos, or other identifiers.

While lawsuits from small businesses are less common, these companies might have more to lose if someone steals their trademarked work. In those situations, they could file a copyright infringement lawsuit to protect their intellectual property rights.

General liability insurance provides coverage for:

• Third-party bodily injury
• Third-party property damage
• Product liability
• Advertising injuries

As a commercial general liability insurance policyholder, you’ll be protected from a copyright infringement lawsuit under your policy’s advertising injuries clause, which includes coverage for:

• Copyright infringement
• Defamation, including libel and slander
• Misappropriation of advertising ideas
• Invasion of privacy

A copyright infringement lawsuit could cost your small business tens of thousands of dollars. If the court finds you guilty, you’d likely need to pay for both parties’ court and attorneys’ fees, as well as payment for damages. You’d also be required to immediately cease using the unauthorized work and turn over any company property that uses it.

Although your general liability policy covers all your legal defense costs and other expenses up to your policy limit, most policies only cover unintentional infringement. If the court determines that you deliberately committed trademark infringement, your insurance policy may not cover the lawsuit, leaving you with a hefty bill.

While all small businesses could benefit from copyright infringement insurance, it’s particularly important for companies with:

• Unoriginal company or product names
• Branding, including logos, slogans, and taglines
• A social media presence

Although copyright insurance is a type of intellectual property (IP) insurance, it primarily protects against copyright infringement claims around your small business’s advertising.

Other types of IP, including patents or trade secrets, may require professional liability insurance, also called errors and omissions insurance (E&O), to protect against IP infringement, including patent infringement.

General liability insurance for media companies, including publishers, advertising agencies, and online publications, excludes coverage for advertising injuries.

Therefore, if you run a media business, you’ll need to buy media liability insurance, which is a type of professional liability insurance.

A media liability policy will cover claims related to:

• Copyright infringement
• Work mistakes and oversights
• Missed deadlines
• Advertising injuries, such as libel and slander
• Invasion of privacy

Complete Insureon’s easy online application today to compare general liability insurance quotes from top-rated U.S. companies. You can also speak to an insurance agent about your business insurance needs, including copyright infringement coverage and other types of intellectual property insurance. Once you find the right insurance products for your small business, you can begin coverage and get your certificate of insurance in less than 24 hours.