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Thanks for the article. Do you have any insight on the best way to protect yourself from what seem like mostly frivolous suits that can come out of no where.

Thanks for the article. Do you have any insight on the best way to protect yourself from what seem like mostly frivolous suits that can come out of no where. For a contrived example say Valleywag which is banned from HN decided to sue PG for defamation or something similar and won a large verdict. Whats the best insurance to hold against HN/PG going bankrupt?

MaxwellKennerly 17y ago
There's defamation-specific insurance out there, typically called "media liability insurance," which fills that need. I believe Chubb Insurance just released a new "MediaGuard" policy that's supposed to have pretty broad coverage in that area. For reference, there are two main risks covered by liability insurance: "defense" and "indemnity." The former pays the costs of a legal defense, the latter pays a settlement / verdict. Most media liability insurance policies cover both, but can charge different premiums based on the "retention" for defense and/or indemnity, i.e. how much you have to spend before the insurance kicks in. If the big worry is paying lawyers to defend a "frivolous" suit, then focus on the former; if the big worry is a "large verdict," then focus on the latter. A common way to save on the premium is to have a sizable retention -- like $20,000 or more -- but then have good coverage after that. If you get sued, you might have to eat the first $20k in legal fees, but won't get bankrupted by the legal fees or the verdict.