Placing You First Insurance Podcast by CRC Group
The Placing You First Podcast spans a diverse spectrum of insurance industry issues to keep you and your clients informed.
Placing You First Insurance Podcast by CRC Group
Who's Watching Your Content? The Changing World of Media Liability Protection
Every business with a social media account now faces media liability exposures that were once limited to publishers and broadcasters. This reality stands at the core of our fascinating conversation with Mario Romero, a professional lines broker specializing in media and entertainment coverage with CRC Group in Los Angeles.
The digital transformation has democratized content creation while simultaneously introducing complex liability questions. From the local bakery using music in Instagram reels without proper licensing to major corporations navigating influencer partnerships, the risk landscape has expanded dramatically. Beyond traditional concerns like copyright and defamation, we explore emerging claim categories including emotional distress, plagiarism, failure to attribute proper credit, deceptive advertising practices, and even claims filed for lack of trigger warnings. Whether advising a Fortune 500 brand or a small business with an active social presence, understanding today's media liability risks has become essential for insurance professionals.
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Welcome to the Placing you First podcast, where we bring you conversations that matter most to today's insurance landscape. I'm Amanda Knight.
Scott Gordon:And I'm Scott Gordon. Today we're diving into the evolving world of media liability. You know, from copyright claims to influencer risks and how insurance is stepping up to meet new challenges in this field. Joining us today is Mario Romero, a professional lines broker with CRC Group in Los Angeles, and he specializes in media and entertainment coverage.
Amanda Knight:This is the Placing you First podcast from CRC Group.
Scott Gordon:This podcast features news and insights from a vast knowledge base of over 5,100 associates who write more than $35 billion in premium annually.
Amanda Knight:Plus, we give you the latest information on what's happening at CRC. This, this, this is the Placing.
Scott Gordon:You.
Amanda Knight:First podcast and now the hosts of the podcast, Amanda Knight and Scott Gordon.
Scott Gordon:Mario, welcome to the show. Thanks for having me.
Amanda Knight:Well, Mario, let's set the stage. How has the rise of content marketing and social media sort of changed liability exposure over the last few years?
Mario Romero:You know, the biggest change that I have noticed over the years is just about any and every risk I ever see has some element of media exposure to it. With the rise of content marketing and viral advertising, many smaller clients are creating promotional videos to promote their products and or services, as well as utilizing social media to generate buzz and interest.
Scott Gordon:Yeah, there's a lot of focus on big names, celebrities, major brands, but what about smaller businesses? Are they just as exposed when it comes to content related claims?
Mario Romero:Oh, certainly, Given what I just mentioned. Without an understanding of media law, many smaller operations are exposed. For example, if you're using music in a promotional video that's intended to generate revenue or promote your business, it's considered commercial use and requires a specific license. Many clients can fly under the radar in this regard, However. All it takes is a lawyer taking notice of the content you're disseminating.
Amanda Knight:Well, and I think I recently ran into something where some companies, or like larger musical entities, studios, et cetera, they will set up like bots to troll the web to see if their content is being used with or without their permission, and so what maybe once could have flown under the radar? I don't know that it even always does anymore.
Mario Romero:That's a great point and, um you know, we've even seen those risks, those bot risks. So, um, yep, they're out there.
Scott Gordon:Yeah, how many times have you posted a video of your kid and put a fun music over it, only to have YouTube or whoever say I'm sorry, you cannot use this Right. Exactly.
Amanda Knight:You do not own this music and you know we used to always think about sort of the classic copyright or defamation, sort of the classic copyright or defamation. But it seems that as things like the internet and social media evolve that those risks are obviously changing. So what other types of claims are starting to pop up that retail agents or their clients might not be?
Mario Romero:thinking about yet Sure, I mean. A few that come to mind are, uh, infliction of emotional distress, plagiarism, failure to give credit or authorship, deceptive business or advertising practices you know whether a potentially defamatory piece of content or one with offensive or alarming subject matter. We've even heard of claims being filed for lack of a trigger warning. Filed for lack of a trigger warning. I'd also be remiss to not mention the evolving exposure of celebrity and influencer liability relating to marketing and endorsement of products, like the collapse of FTX and all of the lawsuits that followed against those who aggressively promoted it Now.
Scott Gordon:when we talk about new risks, we can't not talk about generative AI. New risks we can't not talk about generative AI. How is AI content creation? Complicating media liability exposures for businesses and individuals.
Mario Romero:It's a good one. On one hand, generative AI is quick, it's cost-effective and efficient. On the other hand, you may end up with a host of intellectual property risks you may not have considered previously, especially if you're using it to generate music or videos. There's still many unknowns as to how the marketplace will react to the evolving use of generative AI, though at this time, most carriers are asking pointed questions and really just trying to gain an understanding of how a client may use AI while avoiding the pitfalls of risk. Generative AI learns from data and patterns to create new content. We've even heard of film production companies who aim to produce 100% of their films through AI. It's kind of uncharted territory for the marketplace, and it will be exciting and potentially stressful to witness that evolution?
Amanda Knight:Yeah, for sure, that's a nice way to put it. So, from an insurance perspective, knowing that a lot of this, as you mentioned, is kind of unknown, it's evolving really quickly, sort of in real time, sort of in real time. So, from an insurance perspective, what are the must-have elements that retail agents should be looking for when they are trying to place media liability coverage?
Mario Romero:Sure, you know, oftentimes an occurrence form is most favorable over a claims made form, as well as an open peril form over a named peril form. It's best also to ensure the broadest description of covered media possible that captures all of the client's content, including words, sounds, images, appearances, interviews, all social media activity, all owned and controlled websites, anything falling under fair use, et cetera. Depending on the risk. Merchandising exposure is also key and in general, we're always on the lookout for ways to enhance coverage. Other bells and whistles to mention would be like subpoena expense coverage, mitigation expense coverage, defense costs being outside the limit, contingent bodily injury and property damage coverage, ensuring coverage for violations of the Lanham Act of 1946, as well as ensuring coverage for music used within the covered media.
Amanda Knight:That sounds like a comprehensive list.
Scott Gordon:Well, that got really specific there when it went back to 1946. I was like, yes, yes, those aisles sound. Wait a minute, what? Wow? They did way back for that one.
Amanda Knight:Well, before we jump into rapid fire, I thought of a couple more things we might want to cover and in relation to that comprehensive list you just shared, mario showing us obviously you know what you're doing how does working with the right wholesaler, particularly CRC specialty? How is that beneficial for retail agents and their clients? What's our secret sauce? You know we're going to spill the beans on the podcast. Why should they work with you, with us?
Mario Romero:You know whether a retail agent has a concentration of this business or even just one-off opportunities.
Mario Romero:I cannot stress the importance of utilizing a wholesaler with deep specialization in this space enough. Media and entertainment is a niche segment within the world of insurance, which we all know is relationship-driven. We've honed those relationships and we're extremely lucky to work with some of the finest underwriters in the game. Retail agents can have a leg up on their competition with a knowledgeable wholesale broker in their corner who not only are always looking out for the best ways to expand and broaden coverage, but also that grants them access to exclusive policy forms and or policy enhancements not available through any other channel in the market. Retail agents can also sleep well at night, knowing our capable, very capable claims advocacy team are in their corner at all times. All they do is advocate and intervene on behalf of our clients in claim situations. I mean at the end of the day. We've seen it all, whether television, film production, distributors of the day. We've seen it all, whether television, film production distributors, influencers, authors, music, first party advertising, traditional media like broadcasters, etc.
Amanda Knight:Mario, I am just guessing that when you were six years old, you were not thinking to yourself I cannot wait to grow up and be a wholesale insurance broker, specifically specializing in media liability coverage. So how did you get here, mario? How did you get to the insurance industry and to media liability?
Mario Romero:Like most, I fell into it, right, yeah, I fell into insurance and I fell into wholesale and in falling into wholesale and in falling into wholesale I've now been doing this will be 23 years this year come August and you know, I ended up being here in LA. I ended up working with retail agents who have a concentration of this business over the years and it was kind of a natural move to head and run the media and entertainment team at the at pro elite here in LA. So that's kind of how it happened. Yeah, I mean it's it's been quite a ride.
Scott Gordon:Well, I, I love this subject and I love how, how unique this stuff is, particularly to the field. But I think we've covered all the professional stuff that we want to cover and now we can do a little, something that Amanda and I like to call rapid fire, where you just answer off the top of your head whatever you're thinking. So the first question here I thought the first question would be about food. We were talking about beans and sauces so much earlier, but it's not. It is. If you could instantly and I think the key word here is instantly if you could instantly become an expert in anything other than insurance, what would it be?
Mario Romero:Wow that's tough. How about being a parent? Just joking.
Amanda Knight:I mean, I would take that in art yeah.
Mario Romero:That's very tough. If I were to give you a top three, it would be zoology, metal, drumming or bodybuilding.
Amanda Knight:Wow, I love the diversity there. Yeah, imagine if you were an expert in all three simultaneously.
Mario Romero:Oh yeah, that'd be something.
Amanda Knight:Imagine the content creation there, Mario Just the potential.
Mario Romero:Exposures across the board once again, exactly.
Scott Gordon:You'd definitely get your own Disney series, for sure, for sure 100%. All right, question number two in rapid fire what is your go-to binge-worthy TV show or movie?
Mario Romero:So for a movie. I'm a fan of horror comedies. Those are probably my favorite movies, so I'd have to go with Dead Alive. Great, hilarious film For a TV show probably Snowfall. I love that show. I couldn't look away.
Amanda Knight:I don't think I've seen it. Scott, have you seen it?
Scott Gordon:No, I want to know more.
Amanda Knight:And Scott's a movie and TV guy, so if he hasn't seen it he's going to want to know more.
Mario Romero:Sure Well, to keep it general, it's about the crack epidemic in Los Angeles in the 80s. Oh, I have heard of it?
Scott Gordon:I have heard of it. Yeah, amazing show. Is it a dramatic show? John Singleton made it. Oh, okay, okay, now I'm interested. Yeah, yeah, john Singleton.
Mario Romero:Highly recommend.
Scott Gordon:Been involved with a lot of great stuff over the years, starting with Boys in the Hood, I think was his first film Indeed. Well, that was awesome. I like those answers, mario.
Amanda Knight:Mario, thank you so much for joining us today and sharing your insights, and thank you to our listeners for tuning in. If you're advising clients who create content, whether it's a Fortune 500 brand or a local bakery with an Instagram account, understanding and addressing media liability risks has never been more important.
Scott Gordon:Make sure you subscribe to the Placing you First podcast on your favorite platform so you never miss an episode. Casey Kasem and the rest of us here at the Hit Factory keep your feet on the ground and your eyes to the stars. We'll see you next time.
