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The adult video business has been a booming industry for several decades, with the increasing accessibility of technology, the internet, and changing societal attitudes towards sex, including what’s commonly called porn. However, with great rewards come great risks, and the adult video business is not without its challenges. Insurance coverage is an essential component of managing risks and protecting businesses in this industry. In this article, we will explore why insurance coverage is essential for adult video businesses, the risks they face, and the types of insurance coverage available to them.
Working with experienced insurance agents is key to having the correct policy at the right price.
Why is insurance coverage important for adult video businesses?
The adult video business is subject to many important to know unique risks and liabilities, making business insurance coverage an essential component of business operations in ways that other video content creators share and don’t share. The following are some of the risks and liabilities that adult video businesses face:
- Liability for Content makers and publishers
Adult video businesses are subject to significant legal and regulatory risks related to content that can vary greatly from jurisdiction to jurisdiction. The content of adult videos is often explicit and can be considered offensive or obscene by some individuals and institutions. These videos can lead to various claims and lawsuits, including claims of defamation, invasion of privacy, and copyright infringement. Businesses in this industry are also at risk of liability for the portrayal of minors or non-consenting individuals in their content. Liability insurance can help cover the costs associated with legal defense and damages awarded in such cases.
- Cybersecurity Risks
The adult video business relies heavily on the internet and technology for distribution and marketing. This reliance on technology exposes businesses to cybersecurity risks, such as hacking, data breaches, and cyber-attacks. These risks can result in significant financial losses, reputational damage, and loss of customer data. Cyber liability insurance can help cover the costs associated with data breaches, cyber-attacks, and other cybersecurity risks in a world full of hackers trying every day to take advantage of you and your clients.
- Property Damage
The adult video business often involves the use of specialized equipment, including cameras, lighting, and audio equipment. These items are expensive and can be damaged or stolen, leading to significant financial losses. Business Property insurance, either as business personal property (stays on site) or inland marine (business property that goes to various locations) can help cover the costs associated with repairing or replacing damaged or stolen equipment.
- Business Interruption
The adult video business is subject to various risks that can disrupt operations, including natural disasters, power outages, and equipment failure. These disruptions can lead to significant financial losses, including lost revenue and expenses incurred to get the business back up and running. Business interruption insurance can help cover the costs associated with lost income and expenses during the period of interruption.
- Employee Claims
Businesses in the adult video industry also face risks related to their employees. These risks include claims of discrimination, harassment, wrongful termination, and other employment-related claims. Employment practices liability insurance (EPLI) can help cover the costs associated with defending against these claims and paying damages. It should be obvious to any adult related business owner that regulators and juries may not have a favorable view of your business to begin with, and often will consider anything you’re doing as exploitative.
Types of insurance coverage available for adult video businesses
The adult video business is subject to several unique and special risks and liabilities, and insurance coverage is essential for managing these risks. The following are some of the types of insurance coverage available for adult video businesses:
- General Liability Insurance
General liability insurance provides coverage for third-party bodily injury and property damage claims. This type of insurance can also provide coverage for claims of defamation, invasion of privacy, and copyright infringement related to the content of adult videos. A general liability policy is the center-stone of coverage for most businesses and your adult video business is the same in this regard.
- Cyber Liability Insurance
Cyber liability insurance provides coverage for losses related to data breaches, cyber-attacks, and other cybersecurity risks. This type of insurance can also provide coverage for losses associated with the theft or loss of customer data. If you accept personal data (including payment methods) having the proper controls in place is vital, and having insurance to protect you in case the controls aren’t enough will help keep you in business and creating.
- Property Insurance
Property insurance provides coverage for damage or loss to business property, including equipment, inventory, and buildings. There’s many ways to suffer a loss of business property, and really only two ways to recover from when it happens, either self-insure or transfer the risk to an insurance company, albeit either way, someone is bearing the risk of loss.
- Business Interruption Insurance
Business interruption insurance provides coverage for lost income and expenses incurred during a period of business interruption due to natural disasters, power outages, and equipment failure.
- Employment Practices Liability Insurance (EPLI)
EPLI provides coverage for claims related to employee claims against the employer. This includes people applying to be an employee but not receiving a job, or someone terminated feeling the termination wasn’t lawful.
6. Workers’ Compensation
Workers’ comp provides coverage for claims related to employees injured on the job. Most states require employers to have workers’ compensation for their employees, with some requiring a policy for any employment and others having a minimum amount of payroll in a set amount of time to trigger a coverage requirement. Most states penalize employers heavily if they fail to have proper coverage.