3 Real-Life Lessons in Digital Risk for Influencers (and How to Avoid Them)

Influencers What Risks Do You Face?

How long would your business survive if your Instagram account disappeared tomorrow? If you’re like most creators, the answer is: not long.

At FSB Insurance Service, we’ve partnered with specialist insurer CFC to help small businesses and creators in the UK understand these risks and protect their digital presence. Here are three real-world stories that show exactly what can go wrong, and how the right insurance can save you from disaster.

1. The Costly Music Mistake: Huda Kattan’s Copyright Trouble

Huda Kattan, founder of Huda Beauty, built a global brand through stunning online content. But when she used music in a video without proper licensing, she quickly found herself facing legal trouble and expensive claims.

What happened:
Legal battles over copyright infringement
Potentially huge financial settlements
Damaged reputation and public backlash

How insurance could protect you:
Covers your legal fees and settlements
Protects you from copyright claims
Provides PR experts to manage public backlash

“Given the speed and dynamism of the industry, we’re likely to see influencers become more ambitious and evolve to new platform updates and their audiences’ demands. These opportunities will also bring more exposure and risks.”

Want to stay on the right side of IP law? The UK government has a clear guide to intellectual property for creators and small businesses.

2. Locked Out and Held to Ransom The YouTube Hack Nightmare

One UK influencer lost complete access to their two successful YouTube channels after clicking just one suspicious email link. Their content was deleted, their audience unreachable, and their income stopped overnight.

According to CFC’s case study;

“The next day, the influencer found they had been hacked. They could no longer log in to their YouTube account, and the bank of content they had built over the years had been erased.”

For practical steps on protecting your online accounts and spotting phishing emails, visit the UK government’s Cyber Aware hub.

What happened:
Complete loss of income
Damaged brand trust with followers
Extensive recovery costs
How insurance protects you:
Pays ransom demands and covers lost income
Helps restore or recreate your lost content
Covers legal and investigation expenses

As CFC notes:

“Given the stratospheric usage and reliance on social media accounts for influencers, businesses and online content providers, the attractiveness for cyber criminals will only increase the need for a cyber insurance in the years to come.”

3. Viral Backlash: Molly-Mae Hague’s Podcast Fallout

Influencer and entrepreneur Molly-Mae Hague discovered just how quickly things can spiral online. Her controversial comments on a podcast triggered massive backlash, negative press, and serious damage to her reputation.

If you’re dealing with online backlash or false statements that could affect your reputation or business, West Yorkshire Police provide clear public guidance on what defamation is and how to report it.

What happened:
Severe harm to her reputation
Potential defamation claims
Loss of sponsorship deals and income
How insurance protects you:
Crisis PR support to limit damage
Legal defence against defamation claims
Contract advice and legal assistance

Even if you don’t consider yourself a big influencer, you’re not immune to these risks. Content creators of all sizes face public and legal scrutiny, and many don’t realise how exposed they are until it’s too late.

Protect Yourself Right Now

Take these straightforward actions today to reduce your risk:

✅ Turn on two factor authentication on all your social media accounts
✅ Back up your content regularly, don’t lose years of work
✅ Double check licensing for music, images, and videos before posting
✅ Keep your contracts clear and get legal advice when needed
✅ Learn to spot phishing scams, and train your team if you have one

Your Digital Risk Sense Check

Ask yourself these questions:
Have you enabled two-factor authentication on all platforms?
Do you regularly back up your digital content?
Are you confident about your content licensing rights?
Do you have clear agreements with brand partners?
Can you and your team spot potential cyber threats?
Do you have a crisis communication plan?
Do you have a way to reach followers if your account is suspended?
Have you discussed cyber/media insurance with a broker?

Still Not Sure if Media Insurance is Worth It?

Some people think:
“My following isn’t big enough to worry about claims.”
“I’d never use copyrighted content without permission.”
“Only big agencies need this kind of protection.”

Even small creators can face legal and reputational risks. The idea that only major influencers get targeted is a myth, exposure comes with visibility, not just fame.

It’s not about how big you are, it’s about how exposed you are.

How Exposed Is Your Business?

If your business uses social media to attract customers, build your brand, or generate sales, understanding these digital risks isn’t optional, it’s essential. The good news? The right insurance cover is more accessible and practical than you might think.

At FSB Insurance Service, we make protecting your digital presence straightforward. No complicated jargon, just clear advice tailored to your needs.

📞 Ready to protect your business? Call 020 3883 7976 to discuss media and cyber insurance solutions today.

Because digital risk is real, but so is your peace of mind.