Is influencer insurance the next must-follow for protecting content creators?

An additional meaning for the word “influencer” was inserted into the Oxford English Dictionary in 2007, referring to ”a person who has become well known through use of the internet and social media, and uses celebrity to endorse, promote, or generate interest in specific products, brands, etc, often for payment”.

This definition reflected the uptick in individuals turning their hands to online content creation. Increasingly a popular and profitable endeavour, the art of influencing has the potential to turn an average person into a business boosting opportunity – and consumer brands want a slice of influencers’ wide-reaching following.

According to a Statista survey conducted in June 2023, a UK influencer with two to three years experience earned an average annual salary of £37,500. Influencers with over 10,000 to 50,000 followers, meanwhile, could earn between £100 and £500 per sponsored post.

When done well, therefore, being an influencer – or finfluencer if this activity is focused on financial services – can be a lucrative path to generating extra income.

However, as the popularity of this side hustle has grown, so too have the risks – especially as regulation around social media usage has historically been thin on the ground.

Regulatory support for legitimate online content and platforms is racing to catch up with today’s social media usage, with regulators such as the FCA and the Advertising Standards Authority (ASA) cracking down on those creating content that does not follow its specific guidelines. 

This stance is reinforced through the government’s Online Safety Act, which came into force in October 2023 and is enforced by media and communications regulator Ofcom.

As a result of greater regulatory focus, technology platforms including Google, Bing, Meta, X and TikTok have all changed their policies to only permit paid-for ads for financial services. This includes investments by advertisers that are authorised by the FCA.

Although the FCA confirmed that such action has helped to stem the volume of paid-for scam adverts on social media, it added that “scams and other illegal financial promotions remain too prevalent”.

A FCA spokesperson told Insurance Times: “We’re committed to fighting crime and we’re acting with partners at home and abroad against finfluencers who promote financial products they’re not allowed to.

“Finfluencers must check they’re not breaking the law and putting their followers’ livelihoods and life savings at risk and tech firms should up their game by proactively identifying and removing harmful content.”

With influencers being involved in more online projects and promotions, alongside a greater regulatory spotlight on this activity, there is now a greater need then ever before for influencers to be aware of the risks they could be facing. If these go unacknowledged, influencers and finfluencers could face business interruption losses that leave them out of pocket.

Lack of awareness

While a crackdown on the influencer environment is arguably much needed, the fact that many of these individuals remain unaware of commercial lines products that could support their online careers is leaving many influencers exposed.

Trey Norman, commercial account executive at broker McCarron Coates and Love Island influencer, told Insurance Times that “most influencers and content creators are really underinsured – if they’re insured at all”.

Norman noted that none of his current circle of influencers have insurance in place and that there are no specific influencer insurance policies that he believes are the norm.

He added that as it is an ongoing trend to become an influencer, it is particularly important for younger people to be aware of the risks.

“It’s about educating content creators about insurance and being more aware of [their] risk depending on what [they are] doing,” he explained.

“They need to have policies in place to protect them personally and [as a] business as well. A big part of it is making sure influencers are aware of this and putting suitable packages together that covers them generally.”

Gradually gaining more traction in the UK, influencer insurance is a specialist media liability policy for individuals in the public eye, covering the contractual risks that come with public appearances and the content they share via websites or social media channels.

One example of such insurance is Hiscox’s influencer and public figure protection policy, which offers cover on a civil liability basis for claims around defamation, breach of a promotional contract, intellectual property (IP) infringement, claims against clients, breach of privacy and confidentiality.

Robbie Wood, underwriter and part of the specialist marketing, media and creative sector team at Hiscox, told Insurance Times that “influencer insurance is becoming increasingly relevant as social media continues to evolve”.

He continued: “Traditionally, influencers have not bought insurance at all and so this policy fills a gap that can help satisfy the contractual requirements for insurance imposed by many brands and agencies now for influencers.

“It’s also becoming increasingly common for brands and agencies to request that influencers hold insurance before engaging with them.”

Norman added that while insurance is often seen by small creators as “an afterthought”, because more big brands are tightening the guidelines on their legal contracts, he can see “an appetite for influencer specific policies where it becomes a standard part of doing business”.

Evolving risk

Suzanne Kemble, head of specialty at Hiscox, leads the insurer’s global media, entertainment and events division, which was specifically formed in 2012 to address the evolving nature of media risks.

Discussing how the risks for content creators have evolved, Kemble said: “We have seen reforms to the enforcement of UK consumer protection law contained in the Digital Markets, Competition and Consumers Act 2024, which came into force recently.

“The ASA has also tightened its rules in several areas, such as unhealthy food and drink, over the counter medicines and stricter labelling for paid partnerships.”

The Digital Markets, Competition and Consumers Act 2024 updates the Competition Act 1998 and the Enterprise Act 2002, striving to “stamp out unfair practices and promote competition in digital markets”, according to the UK government. It also grants the Competition and Markets Authority (CMA) new powers to crack down on unfair commercial practices on online platforms and introduce heavier penalties.

As a result of this legislation, influencers are held more accountable for their content and must clearly disclose paid partnerships. For example, by including the term ‘#ad’ in social media posts, to not mislead potential consumers.

Wood added that the ASA has recently been removing influencer adverts for repeatedly failing to disclose paid promotions clearly.

“Through [its] artificial intelligence (AI) monitoring capability, [it is] taking a proactive approach to this,” he noted.

“This was evidenced in a 2025 published report where the ASA reviewed over 50,000 posts across Instagram and TikTok, [where it found] that around 43% of advertorial content wasn’t properly disclosed.”

This growing compliance risk highlights how influencer insurance can help mitigate potential financial and reputational fallout resulting from improperly disclosed content – particularly for those who unintentionally fall foul of advertising rules.

Early stages

While regulatory scrutiny around influencers is intensifying, influencer insurance in the UK is still in its early stages.

Zoe Langford, senior account executive at PolicyBee, explained that influencer insurance has seen a “steady flow” of interest ”over the last two years”, indicating a slow but consistent uptick – although any future insurance guidance that might be issued by the ASA could exponentially increase cover takeup.

She explained that although some influencers “have been asking for cyber insurance in the event that their social media pages are hacked and they lose income from brand deals”, this type of cover does not always consider the legal and reputational risks of working with consumer brands, demonstrating a clear need for an influencer specific product.

PolicyBee offers cover for influencers that can include professional indemnity, public liability, cyber and equipment cover. This protects against risks including defamation, breach of contract or advertising statutes and codes.

Although the online world influencers inhabit is coming under closer regulatory scrutiny, whether bodies such as the FCA or ASA will issue specific insurance requirements for these professionals remains to be seen. Such action would mean that a very new, immature insurance market would need to grow drastically in a bid to keep pace.