I was so proud of the packaging I designed for the new confidential tech gadget. I uploaded a “Sneak Peek” to Dribbble. The problem? The product hadn’t launched yet. The company’s legal team called within 20 minutes claiming “Breach of NDA” and threatening millions in damages for spoiling the surprise.
Key Takeaways
- NDAs are Contracts: Leaking info is a Breach of Contract. As discussed, basic E&O often excludes this.
- Media Liability is Essential: You need coverage for “Disclosure of Confidential Information.” This is standard in “Media Liability” policies but absent in basic BOPs.
- Mitigation is mandatory: You must take it down immediately. If you leave it up for “likes,” you are intentionally increasing damages.
- Injunctions: Insurance pays for damages, but they can’t stop the court from issuing an injunction preventing you from ever working for that client sector again.
The “Why”: The Confidentiality Breach
The Trap: General Liability covers bodily injury. Professional Liability covers bad advice.
Who covers “Big Mouth”?
Media Liability. This specific coverage protects against the “unauthorized disclosure of confidential documents or data.”
If your policy does not have a Media Liability section, you might be paying this out of pocket.
The Investigation: I Quoted 3 Major Carriers
1. Chubb
- My Analysis: Their policy explicitly covers “Wrongful Act” defined as “unauthorized use or disclosure of confidential information.” This is exactly what you need.
2. Travelers
- My Analysis: Their “Design Professional” policy usually includes a “confidentiality” endorsement, but you have to check the specific endorsement list.
3. Embroker (Startup Package)
- My Analysis: Geared towards startups, they understand NDAs. Their E&O package typically includes defense for breach of confidentiality/NDA.
[IMAGE: Screenshot of a Dribbble shot with a “Cease and Desist” overlay]
Comparison Table: NDA Breach Coverage
| Carrier | Covers NDA Breach? | Media Liability Included? | Cost | Best For… |
| Chubb | Yes (Explicit) | Yes | | High-End Work |
| Embroker | Yes | Yes | | Tech Startups |
| Basic GL | NO | No | $ | Nobody |
Step-by-Step Action Plan
- Nuclear Delete: Remove the post from Dribbble, Instagram, LinkedIn, and cache.
- Do Not Admit “Willful” Intent: Don’t say “I knew I shouldn’t have.” Say “I misunderstood the embargo date.” This moves it from “Intentional” to “Negligent.”
- Notify Carrier: Report a “Potential Breach of Confidentiality.”
- Wait for the Demand: Often, if you delete it fast enough, they won’t sue for damages because they can’t prove any actual financial loss yet.
FAQ
Is an NDA legally binding for a freelancer?
Yes. Extremely.
Does insurance cover the fine listed in the NDA?
Some NDAs have “Liquidated Damages” (e.g., “You pay $50k if you leak”). Insurance often excludes “Contractually Assumed Liability” (fines you agreed to). They cover actual damages, not penalty clauses.
Can I use it in my portfolio later?
Only after the product launches publicly.