When actress and filmmaker Rebel Wilson was recently cleared of defaming her The Deb co-star Charlotte MacInnes, it wasn’t her first run-in with a defamation lawsuit.
The case attracted widespread media attention, with reports emerging that Wilson had taken out insurance to help protect against the financial risks of the litigation.
(Perhaps a lesson from her first defamation lawsuit? Further details of this below).
The Federal Court ultimately dismissed the defamation claim, finding the publications were not defamatory and that the plaintiff had failed to establish the serious harm required under Australian defamation law.
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So, can you insure yourself against defamation claims?
What is defamation insurance?
Defamation insurance is designed to help protect individuals and organisations against the potentially significant costs of defending allegations that published statements have damaged another person’s reputation.
Depending on the policy, cover may include:
- Legal defence costs
- Settlement negotiations
- Court-awarded damages (where legally permissible)
- Crisis management or public relations assistance
- Pre-publication legal advice for publishers and media organisations
The precise level of protection depends entirely on the wording of the policy. Some policies cover only defence costs, while others provide broader protection.
Who needs defamation insurance?
While often associated with journalists and media companies, defamation claims increasingly arise in many industries.
Businesses that may consider defamation insurance include:
- Media organisations
- Publishers
- Marketing and advertising agencies
- Public relations firms
- Influencers and content creators
- Directors and executives
- Professional service firms
- Businesses with an active online or social media presence
Even a single social media post can result in costly litigation.
The Rebel Wilson case
Rebel Wilson successfully defended proceedings brought by actor Charlotte MacInnes over a series of Instagram posts relating to the production of Wilson’s directorial debut, The Deb.
MacInnes alleged the posts suggested she had withdrawn allegations of sexual harassment for personal gain, damaging her reputation. However, Justice Elizabeth Raper found that the publications were not defamatory and that there was insufficient evidence they had caused serious reputational harm – a threshold requirement under Australia’s uniform defamation laws.
MacInnes has indicated an intention to appeal the decision.
Reports surrounding the proceedings also highlighted that Wilson had arranged insurance or financial protection to assist with the substantial costs of defending the claim, illustrating just how expensive defamation litigation can become, even when a defendant is ultimately successful.
Rebel Wilson’s earlier defamation case
The recent proceedings are not Wilson’s first experience with defamation litigation.
In 2017, Wilson successfully sued Bauer Media after a series of magazine articles falsely portrayed her as a “serial liar” who had fabricated aspects of her background.
A Victorian jury found the publications defamatory, and Wilson was initially awarded more than $4.5 million in damages.
However, the Victorian Court of Appeal later significantly reduced the damages to $600,000 after finding there was insufficient evidence to support the full claim for economic loss.
The case remains one of Australia’s most well-known defamation proceedings and demonstrated both the importance, and complexity, of protecting reputation through the courts.
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Defamation claims can be costly, even if you win
A successful defence does not necessarily mean a dispute was inexpensive.
Defamation proceedings often involve:
- Extensive evidence gathering
- Multiple court appearances
- Senior legal representation
- Expert witnesses
- Significant legal costs over many months – or even years
For businesses and professionals, these expenses can be substantial regardless of the outcome.
Can insurance prevent a defamation claim?
No.
Insurance cannot stop someone from commencing legal proceedings, nor does it provide a licence to publish defamatory material.
Instead, it is designed to reduce the financial impact of defending a claim and, where the policy allows, responding to any resulting liability.
The best protection remains careful communication, obtaining legal advice before publishing high-risk material, and ensuring appropriate risk management practices are in place.
How Litton Legal can help
Whether you are pursuing a defamation claim or defending allegations that your statements have damaged another person’s reputation, obtaining legal advice early can significantly improve your position.
At Litton Legal, we assist businesses and individuals with defamation disputes, reputation management and commercial litigation, helping clients understand both their legal rights and practical options before disputes escalate.
Contact us here for further assistance.
