The right to seek redress for damage to one's reputation is long established so libel actions are not a new phenomenon, although the number of court actions, their increasing costs and a variety of high profile claimants have ensured they regularly make headline news.
In the past, libel actions have been seen as the preserve of the rich, but now members of the public are more aware of their rights and are correspondingly less reluctant to seek legal redress where they have suffered defamation of character. Amendments introduced in the Defamation Act 1996 and recently passed into law include the summary procedure which allows actions below £10,000 to be settled by a judge, plus the offer of amends procedure which allows publishers to make an early settlement in cases where they admit liability. These increase the likelihood that a remedy for defamation of character is available to more than just the wealthy minority.
Damages awarded to successful plaintiffs in the UK have ranged from only a few pence to many hundreds of thousands of pounds, and the cost of defending an action can be considerable. Whilst the days of substantial six figure settlements of libel actions may have disappeared following the new powers granted to judges, costs remain high and with the introduction of 'no win no fee' litigation the number of individuals prepared to bring a libel action is likely to increase. In addition to the media industry, most organisations today issue some form of publication and are therefore potentially exposed to allegations of libel, infringement of copyright or any of the other 'Wrongful Acts'. All of these can be addressed under a Libel Insurance policy.
The rapid increase in electronic publishing has added a new dimension to the problem. The rise in publication via the internet with its potential to reach an audience worldwide has added to the exposures faced by those publishing material. Companies and organisations are vicariously liable for the actions of their employees and are faced with the threat of litigation arising from the internal or external e-mail transmissions of their staff.
Who is at Risk?
Not only are writers, publishers and broadcasters putting themselves at risk when they publish material, but actions could be pursued against individuals, retail distributors and printers. In fact anyone who publishes or broadcasts material to a third party requires protection from libel, infringement of copyright complaints or any of the other 'Wrongful Acts'.
Organisations at risk include:
- Magazine publishers
- Book publishers
- Publishers of trade journals
- Newspaper publishers
- Radio & television stations
- Any organisations producing staff magazines, advertisements or promotional literature.
The latter category could also include schools, charities, learned societies or trade associations who produce material for general circulation.
Why Insure?
Changes in legislation have failed to arrest the trend for increased litigation. Substantial damages, considerable legal costs and changing publishing technologies have led to increased exposures for anyone involved in the publication of written material. Defence costs for libel actions often exceed the damages awarded many times over, primarily due to the specialist nature of solicitors' work.
Whilst effective risk management can reduce the risks inherent in publishing and broadcasting, it can never eliminate them completely. There are many ways of mitigating potential publishing pitfalls but with authors, editors, journalists and printers under increasing pressure to meet deadlines mistakes can happen. They also face the potential problem of breaching data protection legislation or of using unauthorised confidential information in their fast moving world. Oversights do occur despite rigorous checks for accuracy. This is why an insurance policy can act as a safety net and why the publishing sector looks to our tailor made insurance for protection.
Libel Insurance Typical Policy Features
Comprehensive definition of 'Wrongful Acts' covered in addition to Libel including:
- Slander
- Injurious or malicious falsehood
- Slander of title
- Slander of goods
- Negligent mis-statement
- Passing off
- Unintentional infringement of intellectual property rights
- Unintentional infringement of rights in performance
- Unintentional infringement of database rights
- Infringement of data protection legislation
- Infringement of a right to privacy contained in any statute
- Unintentional trespass in connection with journalistic activities
- Cover for material published on the internet or other electronic media such as e-mail or
on-line databases
- Withdrawal expenses cover for losses incurred in withdrawing a publication or making alterations therein
- Full world-wide jurisdiction available
- Cover for the printers and distributors of publications produced by the Insured
- Compensation for court attendance payable to the Policyholder if employees or directors attend court as a witness in connection with a claim.
Libel Insurance & Professional Indemnity Insurance Media companies such as publishers are well aware of the pitfalls of producing literature, which is inaccurate, or of making statements, which are damaging to the reputation of another person or company. In fact, organisations in many industries issue some form of publication and are potentially exposed to allegations of libel or infringement of copyright as a result of their normal business sales literature. The rapid increase in electronic publishing has added a new dimension to the problem.
The consequences of errors or omissions by those involved in the publishing and distribution of material are perhaps less widely recognised. Depending on the nature of the material being published, third parties may incur financial losses as a result of relying on negligent information, and it is those responsible for producing the information and putting it into circulation who will be most at risk from legal actions.
A combined Libel & Professional Indemnity Policy has been designed with the above diverse concerns in mind.
The policy has been developed to meet the needs of a wide range of publishers or broadcasters. As well as specialists in this field, other entities produce and distribute material, which may expose them to both Libel and PI claims.
The types of organisations that can be considered include:
- trade associations
- chambers of commerce
- charities
- learned societies
- trade magazine publishers
- book publishers
- societies and clubs
- local radio stations
- local authorities
- consumer magazine publishers
- distributors of published material.
Key features
- Blanket cover for losses arising from all the Insured's business activities - not just those associated with specified publications
- The policy will respond to claims arising from material published by the Insured on the internet or other electronic media such as e-mail or on-line databases
- Consideration will be given to providing cover with full worldwide jurisdiction if requested
- The wording is not subject to a coinsurance requirement
- Cover is fully retroactive
- Wide Breach of Professional Duty cover including Breach of Confidence
- Withdrawal Expenses covered as standard up to the full policy limit of indemnity
- Assistance available with risk management initiatives
- Freelance authors, journalists and contributors can have the benefit of protection under their publisher's policy, if requested.
Information required for a Quotation
- Name and business activity of the proposer
- The limit of indemnity
- The annual turnover and fee income of the company
- Details of all publications issued or broadcasts undertaken and/or copies of book catalogues
- The nature and extent of the proposer's use of the internet and/or e-mail
- Details of any previous suits or threatened actions .
Please Note
The summary only provides brief details of the type of general cover available. This varies for each Profession/Business. Cover will also vary depending on the Insurer issuing the policy.
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