The Content Boom—and the Risks That Come With It

The influencer marketing industry is now worth over $21 billion, and in the U.S. alone, there are 4.7 million influencers across platforms like Instagram, TikTok, and YouTube. Within this group, nano-influencers—those with 1,000 to 10,000 followers—make up about 86% of the total, demonstrating just how widespread content creation has become.

Brands from beauty to tech companies, talent agencies, and e-commerce giants rely heavily on content creators to engage audiences, build trust, and drive sales. But as influencer marketing has exploded, so have the legal, financial, and cybersecurity risks.

To better understand these risks, we spoke with industry leaders across marketing, legal, and risk management and conducted research into the biggest liability challenges in influencer partnerships. Here's what we discovered.

Key Insight #1: Copyright & Content Ownership Are a Major Concern

One of the biggest risks brands face when working with influencers is copyright infringement.

Many companies assume influencers know how to source music, images, and videos legally—but if they don't, the brands themselves can be held liable.

🚨 Case Study: Sony Music vs. Marriott ($300M Lawsuit)

Sony Music’s recent lawsuit against Marriott for using unlicensed songs in advertisements highlights how quickly copyright disputes can escalate into massive legal challenges. Even though Marriott didn’t directly produce the content, they still faced serious financial exposure.

What this means for brands:

• Sponsored posts and social content always require copyright clearance.

• Brands—not just influencers—can be held liable for unauthorized content.

• Most traditional business insurance policies don’t cover copyright disputes.

💡 The takeaway: Brands need a better way to manage content ownership risks in influencer campaigns.

Key Insight #2: Cybersecurity Threats for Influencers Impact Brands Too

Influencer accounts are prime targets for hackers, and when things go wrong, brands often get caught in the fallout.

🚨 Example: Influencer Cybersecurity Risks

Industry leaders shared multiple incidents where influencers with large followings had their accounts hacked, leading to fraudulent posts, scams, and financial losses for followers. In one notable instance, an influencer's hacked account led followers to lose over $1 million in a crypto scam, forcing the partnering brand to issue refunds and manage significant public backlash.

What this means for brands: 

• Influencer accounts are lucrative cybercrime targets. 

• If an influencer is hacked and posts misleading content, your brand faces PR and legal risks.

• Most cyber insurance policies only cover corporate breaches—not influencer account takeovers.

💡 The takeaway: Brands need dedicated solutions for influencer cyber liability risks.

Key Insight #3: PR & Brand Safety Risks Are Increasing

Every leader we spoke with emphasized brand safety as a top priority. With influencer marketing, brands don’t just rent an audience—they attach their reputation to the creator’s public persona.

🚨 Case Study: Beauty Brand Cancels Major Deal Over Influencer's Past Tweets

A global beauty brand had to cancel a $5 million influencer campaign after offensive posts from the influencer's past resurfaced. The company faced public backlash, canceled the campaign, severed ties, and shifted strategy to regain consumer trust.

What this means for brands:

• Social media history can become a liability.

• Defamation and PR crises can cost companies millions.

• Traditional insurance typically excludes reputation damage from influencer content.

💡 The takeaway: Brands need more than PR strategies—they need protection.

Why Most Companies Are Unprepared for These Risks

Despite these escalating risks, many companies still lack proper coverage for influencer marketing because:

• Traditional business insurance doesn’t adequately cover digital media risks.

• Media liability insurance designed for film and TV isn’t flexible enough for gig-based creators.

• Cyber insurance typically excludes influencer account hacks.

💡 The takeaway: Brands face significant exposure without realizing it until a crisis hits.

How 1099Policy Solves This Problem

1099Policy has introduced the first fractional media and cyber liability insurance specifically designed for influencer partnerships:

• Covers copyright disputes, defamation claims, and brand safety risks

• Protects against influencer account hacks and social media fraud

• Fractional, on-demand coverage scales with your influencer partnerships

This approach isn’t just about risk mitigation—it’s about setting a new standard for influencer marketing. The best brands don’t just hire creators—they protect them.

The Future of Influencer Marketing: Companies That Set the Bar Higher

The brands that succeed won’t just think about content—they’ll think about protection.

📢 Ready to protect your creator partnerships? Let's talk.

Photo by Laura Chouette on Unsplash