Why Writers and Authors May Need Special Insurance Policies

Disclaimer: This article provides an overview of the basic principles of business practices in the United States. The material contained in this article is NOT legal advice, and does not create an attorney-client or other confidential relationship between the User and the Author Learning Center. Users should contact an attorney in their jurisdiction or financial advisor for advice regarding their particular situation.

Being an author is more than writing and publishing a book. When you take on this endeavor, you become the leader of your own business. As a result, there are plenty of legal risks you may face: claims of defamation, copyright infringement, and breach of contract, just to name a few. While nonfiction and memoir writers face more potential risk than those writing fiction, any author would be wise to learn more about the insurance policies that could protect you from hefty fines and lengthy legal battles.

The three main types of insurance that apply to writers and authors:

1. General liability or business liability:

   This is the most broad and basic type of business insurance. It protects your author business against general claims of bodily injury and property damage. Any writer or author who has set up his or her own small business should consider a general liability policy – it’s often required for contracts and other agreements.

2. Product liability:

   This is a supplement to a general liability policy. It provides protection against claims that your product led to injury or property damage. In general, writers and authors will have a low product liability risk, so it’s worth looking for comprehensive general liability policies that already include product liability coverage. However, if you’re planning on selling branded merchandise other than books – such as apparel, stickers, etc. – you may want to consider a more specialized product liability policy.

3. Media liability or media perils:

   This is a specialized form of Errors and Omissions (E&O) insurance, specifically for media professionals such as publishers, advertising agencies, and, of course, authors. It is also called Publisher’s or Professionals liability insurance. This coverage provides protection against claims such as defamation, invasion of privacy, copyright and trademark infringement, and plagiarism. If you’re writing a memoir, biography, or fiction story based off of real-life people or events, it is certainly worth your time to consider a media liability policy. There are two types of media liability coverage:

a. Occurrence policies offer longer-term coverage. If an incident occurs during any time the policy was in effect, you’ll be covered even if the claim is filed after you’ve switched insurance companies or changed plans.

b. Claims-made policies offer protection only for claims that are filed within the policy period.

Insurance for traditionally published vs. self-published/indie authors:

Most large publishers carry media liability insurance – if you’re working with a publisher, you can request to be added to their policy as an additional insured, if it’s not already included in your contract.

Sometimes, a publisher will instead require an author to purchase his or her own policy, and the publisher will request to be added as an additional insured. Another possible situation is that the publisher will require an author to cover a certain amount of losses, and securing his or her own policy will reduce that amount and limit potential losses.

If you’re a self-published or indie author or your publisher won’t add you to their policy, you can find your own media liability insurance through companies that specialize in this type of coverage. Some writing organizations offer discounted policies to their members, such as the Author’s Guild and the Independent Book Publishers Association.

Expected costs:

There are many factors that can affect your insurance costs, so it’s best to meet with an insurance broker to see what coverage will work best for you and your situation. When it comes to authors, the type of book you’re writing and the content included can impact insurance costs. Deductibles can range from $1,000 to $10,000 or more – this may be affected by the size of your publisher, how your work is being distributed, and general market conditions. The total limits of your liability coverage can range from $250,000 to $1,000,000. With writing organization discounts, you could be offered premiums as low as $450 to $700 per year.

As the leader of your own business, it’s imperative to be aware of the risks you may encounter as an author. For further information on this topic, visit the ALC’s section on The Business of Being a Writer and our Legal content.