Why Are Media Errors & Omissions Liability Premiums Increasing
After so many years of stable Media Errors & Omissions Liability premiums why are Media Libel premiums increasing?
Like so many other things we purchase today, Media Professional Liability premiums are increasing. The primary culprits are frequency of claims and legal fees.
Over the years legal fees to defend a Media E&O Libel claim are increasing. It is not unusual today to spend $40,000 to $50,000 in legal fees and that is before going to court. If a claim reaches court, the legal fees escalate twofold or higher.
We have actually seen legal fees for a Media Professional Liability claim reach $500,000 on a case that was finally dismissed by the judicial system.
Many states are enacting Anti-SLAPP laws. Anti-SLAPP laws are intended to prevent claimants from using courts and potential threats of a lawsuit, to intimidate publishers, broadcasters and others who are exercising their First Amendment rights. Media E&O claimants must still fund the costs of the initial legal costs however.
The problem is that claimants generally do not have the funds to reimburse the defendant’s legal costs, so while a defendant may claim victory, the legal costs are still there.
We at Walterry Insurance Brokers are working very hard to keep the Media Errors & Omission premium increases to a minimum.