A disgruntled client posts a 3-part TikTok series calling your coaching program a “pyramid scheme” and you a “scammer.” It gets 2 million views. Your stripe account is flooded with refund requests. You want to sue them for defamation, and you need PR help to save your brand.
Key Takeaways
- Defensive vs. Offensive: Liability insurance defends you if you are sued. It rarely pays for you to sue someone else (Defamation).
- Crisis Management Rider: You need a policy with “Crisis Management” or “Public Relations” expense coverage. This pays for a PR firm to spin the story.
- Loss of Income: Business Interruption insurance usually triggers on physical damage (fire), not reputational damage. You are likely eating the refund losses.
- Personal Injury (Coverage B): If they sue you for Libel (because you posted a reaction video calling them a liar), your insurance covers that.
The “Why” (The Trap): The “Plaintiff” Problem
Insurance is a shield, not a sword.
I called a broker to ask: “Can I use my insurance to sue a TikToker?”
The Answer: No. You have to hire a defamation lawyer out of pocket (retainers start at $10k in 2026).
However, some high-end policies include “Crisis Event Expenses” which pays for mitigation (PR consultants), but not litigation (suing the client).
The Investigation: Saving the Brand
I looked for carriers that offer Crisis Management.
1. Beazley (Media/Cyber)
- My Analysis: Excellent for online creators.
- The Benefit: Their “reputation management” coverage pays for a PR firm to help scrub negative SEO or manage the fallout.
- Limit: Usually capped at $25k or $50k.
2. Hiscox
- My Analysis: Standard policies include very limited crisis support.
3. LegalShield / BizCounsel
- My Analysis: Again, useful here. They can draft the “Cease and Desist” letter to the TikToker for a low monthly fee.
Comparison Table: Reputation Protection
| Feature | Standard GL | Media Liability (Beazley) | Legal Subscription |
| Suing the Hater | No | No | Letters only |
| Hiring PR Firm | No | Yes (up to limit) | No |
| Defending Counter-Suit | Yes | Yes | No |
[IMAGE: Screenshot of a ‘Cease and Desist’ letter template for defamation]
Step-by-Step Action Plan
- Don’t Reply Publicly: Replying fuels the algorithm. Silence is often better strategically.
- Preserve Evidence: Download the TikToks immediately before they are deleted. You need the file, not just the link.
- Check for “Crisis Management”: Look at your policy. If you have $25k for PR, hire a specialist immediately to flood Google with positive content.
- Send a C&D: Have a lawyer send a formal letter demanding removal based on specific false statements (not opinions).
FAQ Section
Is calling me a ‘scammer’ defamation?
It’s a gray area. If they say “He stole $500” and you didn’t, that’s defamation. If they say “I feel scammed,” that’s an opinion (protected speech).
Can I claim the refunds as a business loss?
For taxes, yes. For insurance claims, no.
What if they are in another country?
Good luck. Suing internationally is rarely worth the cost. Focus on SEO management instead.