By Jonathan Franke, Senior Tech, Media and Cyber Broker at New Dawn Risk
As the 2024 US election approaches, the nation is gearing up for another political whirlwind. America’s political landscape is shaped by a complex web of influences, Political Action Committees (PACs) being one of them. These organizations, which raise and spend money to support candidates and influence policy, have become pivotal in shaping the course of American democracy. In 2022, a non-presidential election year, PACs spent a staggering $5.89 billion, a large proportion of which went towards media activities.
In the modern political arena, PACs engage in a myriad of media-related activities, including advertising, public relations campaigns and lobbying for social and economic issues. These activities are crucial for promoting a chosen candidate, but as a result they expose PACs to a range of media-related risks. Such perils can include defamation, copyright infringement, and invasion of privacy claims, which can lead to costly legal battles.
Historically, many PACs have relied on general liability (GL) insurance policies and basic media coverage extensions on traditional cyber policies for coverage. General liability policies are typically designed to address accidents, injuries, or property damage that may result from a business’s operations. While they may offer some protection for advertising-related risks, they often exclude certain types of advertising injuries, such as copyright infringement, libel, and defamation. Similarly, traditional cyber policies often fail to address the full media exposure associated with these PACs.
Once election season gets into full swing, media exposure for Political Action Committees will be on the rise. For PACs to navigate the coming frontier effectively, comprehensive and bespoke media solutions are an essential investment. Securing their media activities will ensure that their political voices and interests are safeguarded for the tumultuous season ahead.
Please feel free to reach out to Jonathan Franke (jonathan.franke@newdawnrisk.com) for more information on media liability for politically motivated risks.
