How can media professionals protect their business? – Expert interview

What legal risks do media professionals face?

exali: What are the most common risks and damage events in the media industry?

Sajo Konakovic:
One of the most commonly underestimated risks in the media industry concerns image rights and copyright. Many creative professionals are not always aware of the legal issues that come with using images, music, or other protected content.

Often, materials are used without verifying the licence or obtaining permission from the rights holder. This can lead to expensive written warnings or even lawsuits. It’s essential to understand the legal fundamentals of copyright law to avoid such consequences.

exali: How has digitalisation changed these risks – particularly in areas such as social media, content creation, influencer marketing, blogging, and the use of AI or generative tools?

Sajo Konakovic:
Digitalisation has changed the risks for service professionals, agencies, and freelancers in the media industry. Visibility and reach have increased dramatically through social media, blogging, and influencer marketing.

The more followers or attention you gain, the more exposed you become to legal and technical risks. Content creators and influencers, in particular, often face challenges as they produce and share content in real time without always being able to foresee potential legal consequences.

The use of artificial intelligence and generative tools also carries risks, for example, creating content that infringes copyright or spreads incorrect information. With the growing number of media channels and communication platforms, digital visibility continues to expand – and so does the likelihood of legal issues.

How does the right insurance coverage differ by business size?

exali: What should self-employed professionals – for example in graphic design, illustration, or web design – pay special attention to when taking out Professional Indemnity Insurance?

Sajo Konakovic:
For self-employed professionals such as graphic designers, it’s particularly important to pay attention to two things when taking out Professional Indemnity Insurance: both statutory and contractual liability should be covered. In creative professions, liability risks can arise quickly – for example, through copyright infringements, execution errors, or misunderstandings in client contracts.

It’s also essential that the insurance cover is flexible and can be adjusted as the business evolves – for instance, when the professional later transitions the business to a limited company structure.

exali: What is important for companies and agencies in the media industry when it comes to insurance coverage?

Sajo Konakovic:
Agencies face additional risks that need to be considered. The larger an agency becomes, the more visible it is. And with that visibility comes greater potential liability exposure. One of the most important aspects is choosing an adequate sum insured to ensure sufficient protection in the case of a damage event.

Within the Professional Indemnity Insurance, the policy provides worldwide coverage, allowing agencies to be legally protected even when working on international projects across different countries.

For larger companies with employees, the group of insured persons also plays a crucial role. A Professional Indemnity Insurance policy should not only cover the management team but also all employees – from interns to full-time staff.

The policy must be structured so that the company is well protected in all liability matters, whether the error occurs in day-to-day work or results from the actions of the business or its team members.

exali: What mistakes do media professionals make when choosing their Professional Indemnity Insurance?

Sajo Konakovic:
A common mistake media professionals make when choosing Professional Indemnity Insurance is misjudging their actual risk exposure. When that happens, costs can rise quickly. It’s important to carefully consider what could go wrong in your own business to ensure you have the right insurance coverage in place.

How can side or multiple business activities be covered?

exali: How should the insurance coverage be structured if someone works part-time or offers multiple services – for example, graphic design, social media content, and consulting? Are these activities automatically covered, or do they incur additional costs?

Sajo Konakovic:
At exali, the blanket coverage is designed so that a wide range of services, including part-time activities or multiple roles, are automatically included without additional costs. This principle is defined in the policy terms and applies to a broad variety of activities within the professional field.

If there are any questions or uncertainties about what is covered, policyholders can always contact us. We are happy to provide personal advice to ensure you have the right insurance coverage for your business.

How can media professionals protect their business against first party loss?

exali: What does the cover look like in the case of first party losses? For example, what happens in the event of data loss, malware, or damage to your own equipment? Is this automatically included, or only available through optional Add-ons?

Sajo Konakovic:
In principle, our Professional Indemnity Insurance covers financial (third-party) losses, such as cases where malware is transferred to a client’s system. For example, this could happen if someone hands over a USB stick with data to a client and, upon insertion, it infects the client’s laptop with a virus.

In addition, our policy includes several optional add-ons, such as the First-Party Cyber and Data Risks Insurance (FPC). This extension is specifically designed to help when your own business is hacked and you need support to restore access to your systems. This is particularly important, as cybercrime continues to pose an increasing threat to businesses.

You can read more about the specific risks for agencies here: Business Risks For Agencies: These Are The Threats You Should Be Aware Of.

Why is cyber and data protection so important for media professionals?

exali: How do cyber and data protection risks affect the requirements for Professional Indemnity Insurance in the media industry?

Sajo Konakovic:
Cyber and data protection risks have significantly changed the requirements for Professional Indemnity Insurance. Cyber third-party losses caused to a client are already included as a standard feature of the Professional Indemnity cover. Cyberattacks can never be completely ruled out, but if a damage event occurs, you’re covered.

Even if you have no direct control over the attack and couldn’t prevent it, you may still be held liable if a loss occurs. Professional Indemnity Insurance provides the necessary protection in these cases. Even when the cyber incident is beyond your control.