PRODUCT: Media Liability and Film & Entertainment Liability

COMPANY: AXIS PRO/AXIS Insurance (admitted and nonadmitted)

BEST RATING: A

AVAILABILITY: AXIS PRO fields submissions from appointed independent agents and brokers.

FOCUS: AXIS PRO, one of the country’s largest media liability markets, experiences increasing producer interest in two endorsements to the company’s main offerings: the Multimedia Liability and Film Entertainment Liability policies. The two add-ons are Security and Privacy Liability Coverage and First Party Crisis Management and Computer System Extortion. AXIS PRO Senior Vice President Lou Scimecca says there is more interest in these coverages because of increased hacking into computer systems and online and offline theft or loss of private personal information. The endorsements increasingly attract interest from producers with clients in AXIS PRO’s underwriting target: newspaper publishers, magazines, book publishers, authors and freelance writers. Among AXIS PRO’s other favored risks are broadcasting-radio and television stations; cable television systems; advertising, including advertising agencies and advertisers; producers and distributors of programs, such as motion pictures, documentaries, television programs and more; film distributors, film libraries and acquisition and development coverage; multimedia companies, which can consist of any combination from the aforementioned four categories; and public appearance coverage.

AXIS PRO’s trade group clients include the American Association of Advertising Agencies; the National Association of Broadcasters; the Authors Guild; and as two film production operations, the National Association of Television Production Executives and International Documentary Association. The Security and Privacy Liability Coverage Endorsement provides third-party liability coverage for claims stemming from wrongful acts resulting in the disclosure of protected personal information—such as financial, medical or other personally identifiable information protected by privacy regulations—and corporate information. AXIS PRO charges extra for a Security and Privacy Liability add-on that can cover Regulatory Action Defense expenses for proceedings brought by the Federal Trade Commission, the Federal Communications Commission or other governmental agency arising from violations of privacy regulations. Sub-limits for Regulatory Action Defense vary by risk. First Party Crisis Management and Public Relations Expense uses sub-limits (amounts vary by risk) to cover public relations and advertising costs, credit monitoring services and notification expenses related to the disclosure of protected personal information. Computer System Extortion covers expenses incurred to prevent a system failure or to avoid the release of protected data related to extortion threats. Meanwhile, AXIS PRO is finding more interest involving its Cyber Technology Services Errors and Omissions Liability endorsement for media companies that develop software for a client’s website or that provide other technology services. As society dives deeper into electronic and digital communications, many media companies’ business models are evolving into a blend of publishing, broadcasting and advertising, along with providing related services to others, Scimecca says. Cyber Technology E&O can be bundled as an endorsement to the Multimedia Liability and/or Film Entertainment Liability policies or written on a stand-alone basis, Scimecca adds.

UNDERWRITING: AXIS PRO writes mostly primary media liability policies, but the company “does a lot of excess as well,” Scimecca says. Underwriters handle various types of all-risk monoline media liability policies. Third-party liability coverage supports claims arising from actual or alleged defamation (libel and slander), emotional distress, invasion of privacy, copyright and trademark infringement/intellectual property, infringement of title or slogan, plagiarism, and errors & omissions. Multimedia Liability program limits go to $15 million for primary or excess. Excess attachment points start at $5 million. Claims-made forms are occasionally used. AXIS PRO writes on an admitted basis in 48 states and writes coverage on a surplus lines basis in Alaska and Louisiana.

MINIMUM PREMIUM: $1,500.

CONTACT: Lou Scimecca, senior vice president and product manager of media/entertainment, AXIS PRO; 1201 Walnut, Suite 1800, Kansas City, Mo. 64106; 816-292-7932; louis.scimecca@axiscapital.com; axisproinsurance.com.

Ron Lent is an IA contributor.