You run a paid “Inner Circle” Facebook group. Two members get into a heated political debate. It escalates to doxxing and threats. Member A sues Member B, but also sues you for “Creating an Unsafe Environment” and “Negligent Moderation,” claiming you had a duty to protect them in your paid community.
Key Takeaways
- Third-Party Liability: You can be liable for the actions of others in your digital space if you failed to moderate effectively.
- The “Publisher” Risk: As the admin, you are the “Publisher.” Liability insurance for “Personal and Advertising Injury” (Libel/Slander) is key here.
- Terms of Service (TOS): Your strongest defense is a signed TOS that explicitly states: “We are not responsible for member conduct. We reserve the right to remove anyone.”
- Employment Practices Liability (EPLI): If the harasser was a moderator (contractor/employee), you need EPLI.
The “Why” (The Trap): The Community Manager Gap
Most Coaches have insurance for their 1-on-1 advice. They rarely insure their Community Platform.
If you charge for access, you have a “Duty of Care” to maintain the premises (even digital ones). A standard Professional Liability policy covers your advice, not their fights. You need “Media Liability” or specific “General Liability” that includes “Personal Injury” (which covers defamation/harassment suits against you).
The Investigation: Insuring the Group
I asked underwriters about Facebook Group liability.
1. Media Liability Insurance
- My Analysis: Used by publishers/influencers.
- Coverage: Covers claims regarding content, defamation, and emotional distress caused by your platform.
2. General Liability (Personal & Advertising Injury)
- My Analysis: This section (Coverage B) is vital.
- The Limit: Ensure you have at least $1M.
- The Defense: It defends you if you are sued because someone was bullied in your group.
Comparison Table: Moderation Risks
| Scenario | Insurance Coverage | Best Defense |
| Member bullies Member | GL (Personal Injury) | Strong TOS & Moderation Logs |
| You bully Member | Media Liability | None (Don’t do it) |
| Data Scraping in Group | Cyber Liability | Privacy settings |
[IMAGE: Photo of a ‘Community Guidelines’ document with a ‘Zero Tolerance’ policy highlighted]
Step-by-Step Action Plan
- Update Community Guidelines: Explicitly define “Harassment” and the consequences (immediate ban).
- The “Hold Harmless” Clause: In your group join questions/contract: “Member agrees to hold Admin harmless for the actions of other members.”
- Moderate Actively: You cannot ignore reports. If a threat is reported and you leave it up for 24 hours, you are negligent.
- Archive Evidence: Before deleting a harassing thread, screenshot it. You need proof of why you banned Member B to prevent them from suing you for “Breach of Contract” (kicking them out after they paid).
FAQ Section
Can a banned member sue me for a refund?
Yes. Your TOS should say: “Violation of guidelines results in termination without refund.”
Am I liable if they meet up in real life and get hurt?
Generally no, unless it was an official “Meetup” organized by you.
Does Section 230 protect me?
Section 230 protects platforms (Facebook). As a paid group owner/admin, you might have protection, but don’t bank on it. It’s a complex legal area in 2026.