I used a three-second clip of a trending 2026 pop hit for a transition in my “Day in the Life” reel, assuming it fell under Fair Use or platform agreements. Two weeks later, a FedEx envelope arrived from Universal Music Group’s legal team demanding $150,000 in statutory damages for “willful copyright infringement,” claiming the audio wasn’t licensed for commercial use because I had a sponsor link in the bio. My stomach dropped as I realized my standard renters insurance doesn’t care about intellectual property disputes.
Key Takeaways
- General Liability Fails Here: Standard business insurance covers “Bodily Injury” and “Property Damage.” It rarely covers copyright infringement unless you have a specific “Media Liability” endorsement.
- Commercial vs. Personal Use: Platform music libraries (TikTok/Instagram) are usually for personal use. The moment you post #Ad or link a product, you are a commercial entity, and those licenses often void.
- The “Fair Use” Myth: Fair Use is a legal defense you use in court (which costs $50k to argue). It does not stop the lawsuit from happening.
- Media Liability Insurance: This is the only policy type that specifically covers copyright infringement defense costs and settlements.
The “Why” (The Trap): The IP Exclusion
Most creators buy a cheap General Liability (GL) policy to satisfy a brand deal.
The Trap: Look at the “Exclusions” section of your GL policy. You will likely see “Exclusion – Intellectual Property.”
This clause states that any claim arising out of copyright, patent, or trademark infringement is excluded.
To get coverage, you need “Media Liability” (sometimes called “Personal and Advertising Injury” with IP endorsements). Without it, you are paying the $150k out of pocket.
[IMAGE: Screenshot of a General Liability policy highlighting the “Exclusion – Intellectual Property Rights” clause]
The Investigation: I Called Them
I acted as a content creator with 500k followers facing a copyright claim.
1. Hiscox (Media Liability)
- The Verdict: They are the gold standard for this. Their policy specifically lists “Copyright Infringement” as a covered peril.
- The Cost: Higher premiums (starting around $500/year), but they provide a legal team that specializes in IP law.
2. Thimble (Creator Policy)
- The Verdict: Great for general slips and falls, but I had to dig deep into the “Professional Liability” section. Some tiers cover “Personal Advertising Injury” (libel/slander), but copyright coverage was limited or had low sub-limits ($25k).
- The Risk: A $25k limit doesn’t cover a major label lawsuit.
3. Chubb (MediaGuard)
- The Verdict: Corporate grade. Overkill for a micro-influencer, but essential if you are a production house. They cover music, footage, and trademark disputes aggressively.
Comparison Table
| Carrier | Policy Type | Copyright Defense? | Est. Annual Cost |
| Hiscox | Media Liability | Yes (Primary) | ~$600 |
| Thimble | General/Prof. Liability | Check Sub-limits | ~$350 |
| Standard GL | General Liability | NO (Excluded) | ~$250 |
Step-by-Step Action Plan
- Don’t Delete (Yet): Archive the post. Deleting it can be seen as “destruction of evidence” if litigation has started. Ask a lawyer first.
- Check Your “Personal & Advertising Injury” Clause: Does it exclude IP? If yes, you are exposed.
- Hire an IP Lawyer: Do not reply to the letter yourself. Admitting “I didn’t know” is admitting guilt. Let a lawyer negotiate the settlement down (often from $150k to $5k if caught early).
- Buy Media Liability: For future protection. It won’t cover this claim (prior acts), but it saves you next time.
FAQ
Does the platform (TikTok/IG) cover me?
No. Their Terms of Service explicitly shift liability to you if you use music commercially without a direct license.
What if I used a “Royalty Free” site?
If you have a license from Epidemic Sound or Artlist, send that to the lawyers. That is your “Get Out of Jail Free” card.
Does an LLC protect me?
Only if the LLC has assets. If you pierce the corporate veil (mix personal/business funds), they can still come after your personal house.