Reposting Someone Else's Video in Your Ad Can Get Expensive Fast

By Toby Hartman, MM Insurance Associates

I talk to business owners every week who are doing their own marketing. They are posting on Facebook, boosting posts, and running ads on Instagram. I love it. But a lawsuit filed last week is a good reminder that a marketing shortcut can turn into a real bill.

A content creator sued a supplement company in federal court, saying it ran at least 12 paid Meta ads built from four of her videos without permission. Because she registered her videos with the Copyright Office soon after posting them, the law lets her ask for statutory damages. For willful infringement, that can reach $150,000 per video. Four videos. You can do that math.

That is a bigger company than most of our clients, but I see the same habits in small businesses all the time.

Where small businesses get into trouble

• Using a customer's video or review photo in an ad without written permission.

• Grabbing a photo from Google Images for a flyer or website.

• Reposting a trending clip or song in a paid promotion.

• Hiring a freelancer who used images they did not have the rights to.

Most of the time nobody notices. When somebody does, the letter usually comes from a lawyer, and it rarely asks nicely.

Does business insurance cover this?

Sometimes, and that word is doing a lot of work. Many general liability policies include protection for certain advertising claims, which can include copyright problems that show up in your advertisement. But there are limits. Some policies leave out businesses whose main work is advertising, publishing, or media. Some leave out claims you knew about, or content you were warned about and used anyway. And a lot of what people call "content" is not technically an advertisement, which can change the answer.

If you produce a lot of content, or your business lives on social media, a general liability policy may not be enough. That is where a media or professional liability policy can make sense. I would much rather walk through your policy with you now than read it for the first time next to a demand letter.

Simple habits that protect you

• Get written permission before you use a customer's photo, video, or review in an ad. A short release form works.

• Use licensed stock images and music, and save the license.

• Put it in writing that freelancers and agencies own or have rights to everything they hand you.

• When in doubt, create your own content. Your phone and your team are more authentic anyway.

• If you get a demand letter, call your agent before you respond.

For more on this topic, see our post on YouTube and social media insurance.

Frequently asked questions

Can I use a customer's video in my ad if they tagged my business?

A tag is not permission to use it in a paid ad. Ask, and get it in writing.

Does general liability insurance cover copyright claims?

It can cover some copyright claims tied to your advertising, but there are important limits. Have your agent review your policy.

What should I do if I get a copyright demand letter?

Do not ignore it and do not reply on your own. Call your insurance agent right away so the claim can be reported on time.

If you run your own marketing and want to know where you stand, call us at (262) 754-4736. We will look at your policy and give you a straight answer.