Insurance for Advertisers and Broadcasters

One of our radio station clients was sued in federal court the other day for slander, first amendment violations and failure to allow a "citizen" access to the news media. The situation arose because the clients was hosting a call in show and discussing issues of local interest. A caller began a diatribe and was allegedly cut off by the host and called a "nut". that was it; nothing more.

A year and a half later, a package was dfelivered to the client bt a process server. It was a pro se (filed by the plaintiff...no lawyer) law suit. Many other persons and entities were included in the suit, and a brief on line search revealed that this was only one of many this person had filed...including a suit against the President of the United States and the Postmaster general.

There are 2 kinds of legal head aches: those you have to deal with and those you have to deal with and pay for. The client thought this was the former and learned it was the latter after his claim had been submitted to the insurance carrier and denied.

The station carried a General Comprehensive Liability policy, the kind that protects from fall downs and loss by fire and water damage. this one also contained coverage for advertising injury and for actions such as defamation and slander. Problem is, that the policy also excludes from its coverage of these two occurences anyone engaged in the business of advertising or broadcasting, and clearly a radio station is in the broadcast business. Clearly, the carrier wants a broadcaster or an ad agency to apply for the coverage seperatly, underwrite the risk and charge a premium that will reward the carrier for taking the risk. Had this rider existed, the carrier would have provided the defnense and likely the indemnity if a judgment was awarded.

Should the broker have so advised the station? That remains to be seen, but safe practice would say it should have.

Every story has a moral. This one is to be sure that if you are in the advertising or broadcast business you have a rider to cover your industry specific activities. If you don't , likely you are not covered.