Will Premium Increase If We File This Claim? (California)

[Guest]

This is in California.

Our marketing contractor recently (unbeknownst to us at the time) put a couple of someone else's photos (without their permission) on our website to promote an event that we were producing. We are now attempting to settle with this photographer (and avoid litigation). She (the photographer) wants an $18K settlement.

My question is, if we go through our general liability policy to cover this fee, will that cause our insurance premiums to increase in the future? Will we have trouble obtaining coverage in the future? We have no other claims in our whole 6-year history as a company.

Thanks.

 

[xrac]

This is in California.

Our marketing contractor recently (unbeknownst to us at the time) put a couple of someone else's photos (without their permission) on our website to promote an event that we were producing. We are now attempting to settle with this photographer (and avoid litigation). She (the photographer) wants an $18K settlement.

My question is, if we go through our general liability policy to cover this fee, will that cause our insurance premiums to increase in the future? Will we have trouble obtaining coverage in the future? We have no other claims in our whole 6-year history as a company.

Thanks.

This sounds like someone trying to hold you up. How much is your deductible under your policy? I would offer them that amount to settle because that is what it will cost you if you turn it over to the insurance company. If they will not settle then turn it over to insurance.

Will premiums go up? Maybe but I doubt that it will by much and if so it usually is only for three years.

 

[blue_wynd]

My initial opinion:

If the contractor isn't an employee of yours, you should be telling her to go after this contractor first. You paid the contractor for a service; they messed up, their responsibility to fix it.

Disclaimer: I am not a lawyer. You should ask your lawyer.

My second opinion:

I don't believe your general liability will be covering this. If I would to venture a guess, it might be a part of your professional liability as an endorsement. Or if you have a separate Intellectual Property Insurance.

Google is your friend:
Insurance for copyright, trademark, patent infringement, libel, slander, unfair competition
Intellectual Property Insurance

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As an addon, I would also ask that contractor if they have coverage for this claim. If they do, you should have their insurance carrier defend you too.