The Allahbadia experience: Creators need more than views to protect careers

Allahbadia’s channels were renamed 'Tesla' and stripped of its videos. While YouTube managed to restore the content, the incident underscored a broader issue: Content creators in India remain dangerously exposed to cyberattacks, with no dedicated insurance products to protect them.

Despite their enormous influence and financial stakes, content creators are almost the only business category without adequate insurance coverage to protect their digital assets. 

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It's high time

India has the most YouTube channels with over 100,000 subscribers—92,935 as of 2024. Top digital content makers can earn up to ₹7.5 lakh per month or more, including sponsorships and promotional collaborations. However, this rapid expansion has overtaken the invention of insurance solutions designed to shield creators from potential losses. In the absence of specialized plans, they are subject to both reputational damage and significant financial losses.

Cyberattacks on content creators are becoming increasingly common in India and globally. In 2023, comedian Tanmay Bhat and journalist Barkha Dutt were also victims of similar hacks. However, unlike traditional businesses, which have insurance to cover revenue losses from physical disruptions, content creators have no safety net when their digital presence is compromised.

In developed economies, insurers are already selling coverage targeted exclusively to content creators. These packages often contain loss of income and errors and omissions (E&O) insurance, which provide protection against income disruption in the event of hacking, defamation or inadvertent content errors. 

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For example, if a YouTuber provides incorrect financial advice, resulting in a loss for a viewer, E&O insurance can pay the legal fees. The same coverage might apply to defamation cases, a constant risk for creators operating in highly opinionated or contentious sectors.

In India, however, the insurance market has yet to adapt to these new expectations. Current cyber insurance plans often target large enterprises or individuals. However, the financial damage to content creators due to hacking is not a solution currently being offered. This requires insurers to offer a product that can cater to this rapidly growing industry—which is predicted to grow from $2 billion in 2023 to $8 billion by 2027.

A complex financial landscape

While the lack of dedicated insurance products is concerning, the limited demand exacerbates the issue. Many creators are not fully aware of the extent of their exposure, and insurers, lacking historical data to accurately price these risks, have been slow to innovate. However, as incidents like Allahbadia’s hack become more frequent, demand for specialized products will inevitably grow. Creators will soon realize that they face unique risks, including cyberattacks, defamation claims, and intellectual property theft, all of which can have serious financial implications.

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The requirement for comprehensive coverage extends beyond ordinary cyber insurance. Content creators must navigate a complex financial landscape, with revenue streams ranging from advertising and corporate sponsorships to paid promotions and premium memberships. Any disruption to these streams, whether due to a cyberattack or a legal issue, could have a knock-on effect on their income. Insurers will need to devise solutions that address not only content loss but also the financial risks of disrupting company operations.

Developing a product to address these risks would not be a challenging endeavour. Insurers could easily expand existing cyber insurance policies to include revenue protection for platform disruptions and liability coverage for content-related claims. Premiums for such policies could remain relatively affordable—potentially ranging from ₹5,000 to ₹10,000 annually for a ₹5 lakh cover—making them accessible for low- to mid-tier creators. As more creators enter the market, the spread of risk would allow insurers to adjust pricing and offer comprehensive solutions.

Allahbadia's experience should serve as a wake-up warning to both creators and insurers in India. The digital economy is expanding at an unprecedented rate, posing new hazards for those who rely on these platforms for a living. If insurers respond quickly to design specialized policies, they will not only secure content creators' financial destinies but also get access to a blossoming industry primed for growth.

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In a world where digital content is as important as physical assets, it's past the time to start preserving it properly.

Neha Anand is vice president-head of cyber at Prudent Insurance Brokers.