i got scammed for $1,000,000

Summary

In this video, the creator recounts being defrauded of a million dollars through an insurance scam. They explain how they purchased media insurance to protect against defamation lawsuits, a common risk in their line of original reporting. However, when faced with a lawsuit from Logan Paul, they discovered their new policy had an exclusion clause for defamation, rendering their insurance useless. Despite paying significant premiums, they were left to fend for themselves, leading to a frustrating and costly ordeal. The creator now faces the dilemma of potentially suing their own insurance company, while also resorting to selling merchandise to recoup losses.

Takeaways

• 😱 The video creator was scammed for a million dollars due to a misunderstanding with their insurance policy regarding defamation lawsuits.
• 📺 The creator had media insurance, specifically for defamation, as a precaution for reporting on wealthy individuals who might sue for defamation.
• 💡 The idea to get insurance came from another YouTuber's experience with a lawsuit, emphasizing the importance of being prepared for legal battles.
• 📈 The insurance premium increased over time as the channel grew and was perceived as a higher risk by the insurance company.
• 📑 The insurance policy had a fine print exclusion for defamation claims, which was not noticed until the creator tried to file a claim.
• 🤔 The creator questioned the roles of the insurance broker and underwriter in not highlighting the exclusion and whether they should have read the entire policy themselves.
• 💸 The creator paid tens of thousands of dollars for insurance that ultimately did not cover the specific risk they were concerned about.
• 🚫 The policy also had an exclusion for digital assets, which is a significant part of the creator's content.
• 🤝 The insurance broker admitted they were unaware of the policy's exclusions and that the underwriter may not have read through every line of the policy.
• 🔍 The situation has led the creator to seek legal advice, potentially against the insurance company that was supposed to provide coverage.
• 👕 As a result of the financial setback, the creator is now selling merchandise, such as shirts, to help recoup the losses.

Q & A

What type of insurance did the speaker initially have to protect against lawsuits?

The speaker initially had media insurance or errors and omissions insurance to protect against defamation lawsuits.

Why did the speaker believe they were covered for defamation claims?

The speaker believed they were covered for defamation claims because they had been covered by the same type of insurance in the past and had successfully used it to defend against such lawsuits.

What happened when the speaker contacted their insurance company to file a claim for the Logan Paul lawsuit?

When the speaker contacted their insurance company to file a claim, the company refused to pay, citing an exclusion in the new policy that excluded defamation claims.

What was the speaker's reaction to the insurance company's refusal to cover the defamation claim?

The speaker was confused and shocked, as they had specifically purchased the insurance to cover defamation claims, which they considered to be a part of errors and omissions in media.

How much did the speaker estimate they had paid in premiums for the insurance over its lifetime?

The speaker estimated they had paid tens of thousands of dollars in premiums for the insurance over its lifetime.

What was the initial reason the speaker decided to get errors and omissions insurance?

The initial reason the speaker decided to get errors and omissions insurance was advice from another YouTuber who had been in a lawsuit, emphasizing the need for protection against such legal actions.

How did the speaker's channel size affect the cost of their insurance?

As the speaker's channel grew larger, the cost of their insurance increased significantly because the insurance company considered them a higher risk due to the increased visibility and potential for more viewers.

Why did the insurance company not renew the speaker's policy initially?

The insurance company did not renew the speaker's policy initially because they felt the speaker had become a risk after using the insurance and they wanted to charge more for it.

What exclusions were found in the new insurance policy that the speaker signed?

The new insurance policy had exclusions for defamation claims and coverage related to digital assets, which were the main topics of the speaker's content.

What actions did the speaker take after realizing the insurance policy did not cover what they expected?

The speaker started talking to lawyers to explore their options against the insurance company and the broker, as well as selling shirts to help cover the costs of the lawsuit.

What was the speaker's final stance on the situation after some time had passed?

After some time had passed, the speaker was able to appreciate the irony of the situation but admitted that they were initially very angry and unhappy about it.

Outlines

00:00

📜 Scammed by Insurance: The Unexpected Policy Exclusion

The narrator recounts a frustrating experience of being defrauded by their insurance company. Despite having media insurance to cover defamation lawsuits, which is crucial for media companies reporting on wealthy individuals, they found out that their policy had an exclusion for defamation claims. This was discovered when they tried to file a claim after being sued by Logan Paul. The narrator explains how they had previously used their insurance to cover defamation and had paid thousands of dollars annually, only to be denied coverage when they needed it most. The betrayal by the insurance company and the realization that they were essentially paying for an ineffective policy led to a sense of being scammed for the amount they had invested in the insurance.

05:00

📈 The Rising Costs and Hidden Exclusions of Media Insurance

This paragraph delves into the financial implications and the complexities of maintaining media insurance. The narrator describes how the cost of their insurance increased significantly after they had to use it, akin to car insurance rates going up after an accident. They express discontent with the fact that despite not being at fault in their claims, the insurance premiums still soared. As their channel grew in popularity, so did the perceived risk, leading to higher insurance costs. The narrator also recounts the process of finding new insurance when their previous insurer decided not to renew their policy. They eventually signed up with a new insurer through their broker, only to later discover that the new policy had exclusions that rendered it useless for their needs, specifically for defamation and digital assets, which are central to their content.

10:01

🤯 The Fallout: Confronting Insurance and Broker Missteps

In the final paragraph, the narrator discusses the aftermath of discovering the policy's exclusions. They are now in a predicament where they must consider legal action against the insurance company that failed to provide the coverage they paid for. The broker, who was supposed to secure appropriate insurance, admits to not being aware of the exclusions in the policy. The underwriter also seems to be in the dark about these exclusions, leading to a finger-pointing situation between the two parties. The narrator speculates that this might not be an isolated incident and that other policyholders could be in the same boat, unaware of the limitations of their insurance. The paragraph ends with the narrator resorting to selling merchandise to offset the financial setback, inviting viewers to support them by purchasing a shirt, and expressing a desire to hear similar stories from the audience.

Keywords

💡Scammed

Scammed refers to being deceived or cheated, typically in a financial context. In the video, the narrator claims to have been scammed for a million dollars due to a misunderstanding with an insurance policy. The term is central to the video's theme, illustrating the narrator's experience with a deceptive situation.

💡Media Insurance

Media Insurance, also known as Errors and Omissions (E&O) insurance, is a type of liability insurance that protects media companies from claims arising from defamation, libel, and other media-related legal issues. The narrator discusses how they obtained this insurance to protect against defamation lawsuits, which is a key element of the video's narrative.

💡Defamation

Defamation is a false statement that harms the reputation of an individual or entity. The narrator mentions defamation as the primary reason for obtaining media insurance, as they were involved in reporting that could potentially lead to such lawsuits. The concept of defamation is integral to understanding the video's conflict.

💡Errors and Omissions Insurance

Errors and Omissions Insurance, often abbreviated as E&O, is a professional liability insurance that covers professionals for negligence and errors made in their professional services. The narrator's confusion arises from the insurance company excluding defamation from this type of insurance, which is supposed to cover media-related errors and omissions.

💡Policy Exclusions

Policy Exclusions are specific conditions or situations that are not covered by an insurance policy. The video's main issue revolves around the narrator discovering that their new insurance policy had exclusions for defamation, which was the primary risk they sought to insure against.

💡Insurance Broker

An Insurance Broker is an intermediary who helps clients find insurance policies that suit their needs. In the video, the narrator relies on an insurance broker to secure media insurance, but the broker fails to inform them of the policy's exclusions, leading to the feeling of being scammed.

💡Cease and Desist Letter

A Cease and Desist Letter is a formal request sent by a lawyer on behalf of a client, demanding that the recipient stop certain illegal activities. The narrator mentions receiving such a letter, which triggered the use of their insurance to defend against potential defamation claims.

💡Frivolous Lawsuit

A Frivolous Lawsuit refers to a legal action that has little to no chance of success, often filed to harass or intimidate the defendant. The narrator discusses the risk of such lawsuits as a reason for obtaining media insurance, highlighting the potential legal challenges faced by media companies.

💡Digital Assets

Digital Assets in the context of the video refer to online content or property, such as videos, articles, or digital media. The insurance policy had an exclusion for claims related to digital assets, which is problematic for the narrator, as their content primarily deals with digital topics.

💡Fine Print

Fine Print refers to the small, often overlooked text in contracts or agreements that contains important details or conditions. The video's conflict arises from the narrator not noticing exclusions in the fine print of their insurance policy, which led to the feeling of being deceived.

💡GoFundMe

GoFundMe is a crowdfunding platform where individuals can raise money for personal causes or emergencies. The narrator mentions GoFundMe as a potential way to raise funds for their legal battle but decides against it, believing their insurance would cover the costs.

Highlights

The narrator got scammed for a million dollars due to a lawsuit against Logan Paul.

Media insurance or errors and omissions insurance is essential for media companies to protect against defamation lawsuits.

The narrator had to defend against a frivolous lawsuit, which is expensive and why insurance is crucial.

The narrator had been paying for defamation insurance but found out it was excluded in the new policy's fine print.

Errors and omissions in media are synonymous with defamation, which was confusingly not covered by the insurance.

The narrator had previously successfully used defamation insurance to cover themselves.

The insurance company denied the claim based on an exclusion in the policy that was not initially noticed.

The narrator had paid tens of thousands of dollars for insurance that ultimately did not provide coverage.

A YouTuber's advice led the narrator to seek errors and omissions insurance to protect against potential lawsuits.

The insurance became significantly more expensive as the channel grew and was used, indicating increased risk.

The insurance company decided not to renew the policy, forcing the narrator to find a new one.

A new insurance policy was found at 40% more cost, with exclusions that were not noticed until later.

The policy excluded coverage for defamation and digital assets, which are central to the narrator's content.

The insurance broker and company were unaware of the exclusions, pointing to a lack of communication.

The narrator is now in a position of having to potentially take legal action against the insurance company.

The situation has led to the narrator selling merchandise, like shirts, to offset the financial impact.

The narrator reflects on the irony and frustration of the situation, seeking support and sharing the story.

Transcripts

I got scammed for a million dollars and

here's my story you may have seen the

video on my main Channel where I talk

about how we should have been covered up

to a million dollars for this lawsuit

against Logan Paul because we have

what's called media insurance or errors

and omissions insurance the reason I got

this the reason most media companies get

this is because of defamation lawsuits

especially if you're going to do

original reporting on very rich people

and accuse them of things like scamming

you know people don't take too kindly to

that and many times they will threaten

to frivolously sue you uh sometimes they

even will sue you and you have to be

prepared to defend yourself it's very

expensive and so you want some way to do

that so you can get insured for that you

can get insured for defamation and we've

actually used the same type of

defamation Insurance uh or aors and

omissions insurance to cover ourselves

before and successfully done that this

time we thought it would be no different

so when we got sued uh I saw a lot of

great like support from people saying

look I want to help I want to help you

kind of like you know you should do it

GoFundMe or whatever and I said to

myself well look I don't want to do that

because I don't need it and many

commenters knew that I had insurance and

they said hey he doesn't need it don't

worry he's got this s's no missions

insurance I was like yeah you're right

you know that's true uh except then I

called my insurance company to put in a

claim I'm like yo knock knock we've been

paying you thousands of a year why not

uh time for you to pay up and they

promptly called back they're like uh

actually no no we're not going to do

that because in the fine print of our

policy your new policy we've excluded

ourselves from defamation claims so I

was confused I was like wait but I the

whole reason I got this was defamation

and they're like yeah and I'm like well

what does this cover if not defamation

they're like well errors and omissions

and I'm

thinking what you C what do you call

errors and omissions in media you call

it defamation I mean if if if CNN goes

on and they make an error about some

random person that person's not going to

sue them for the error they're going to

sue them for

defamation um so I was confus I was like

wildly confused I go to my policy I'm

like shocked to find yeah okay sure

enough yep you guys are excluded from

defamation and I'm like how did this

happen so that requir the full so that's

the

tldr um scammed for a million bucks I if

they had paid out the whole claim right

like that's obviously a big part of this

uh ultimately we paid like I think

during the lifetime of this insurance we

probably paid like a few tens of

thousands of dollars to this insurance

so it hasn't been cheap to pay for

insurance that ultimately did nothing so

we at minimum got scammed for that

amount if you actually look at the total

policy um we had it was up to $1 million

so I don't think it's a stretch to say

we got scammed for a million bucks but

um the full story I think is even more

interesting

so initially we had gotten a message

from um another YouTuber who had just

been in a lawsuit this is how we started

getting into this whole thing and they

told us look dude I just paid a quarter

of a million we were small at this time

he goes I we I just got paid a quarter

of a million dollars to fight this

lawsuit I'm in the right it's totally

frivolous this guy knows it you need to

make sure you get this thing called

errors and omissions insurance so you

can be protected like I wasn't so um we

were a small Channel and relatively the

insurance was going to be very expensive

for us but I appreciated that and I

thought you know that's really wise if

this channel continues in a certain

direction in the type of content that I

want to produce we need to have this so

we found a broker who kind of advertised

himself as like look every YouTuber

needs defamation insurance

um if they're going to be publicly

talking about news about like different

topics so we get a hold of this guy and

we say hey we want that so he goes great

so he shops us around some insurance and

we pretty immediately find some carriers

who willing to take us because at the

time our channel is much low uh smaller

and I would just say it's like less

risky so to speak because the smaller

you are the less people are going to see

it I it's just not as big of a risk so

we get we get covered and in 2019 or

2020 we get our a seasoned assist letter

from Dan lock okay I'm just trying to

remember the year I'm not so clear about

the years but I just remember we got a

season assist from Dan lock it was one

of our first and the guy shot up at our

house really freaked us out he's like

hey are you blah blah blah I'm like yes

he's like ah you know not you've been

served but like here this is you know

aha we got you so I'm reading the ceas

and assist letter it's very like Angry

you know lawyers use that language like

you have to respond like da da da we're

going to take very you know heavy legal

action against you so we were freaked

out so I called my uh insurance and I

was like R ring hey we're getting a

season assist for defamation can you

help they're like yep we cover that

that's the whole point of the stuff

that's why you got it so we're going to

uh get you a lawyer so we got a lawyer

we fought the cease and assist It

ultimately turned into nothing in fact

most cease and assist letters turn into

nothing but we were relieved we were

like okay great this stuff works it's

very glad we have it so we go the next

year and it gets more expensive

significantly more expensive this type

of insurance because as you use it

they're like well you're a risk now now

that you've used the thing you paid for

we have to charge you a lot more for it

it's maybe like getting into an accident

with like car insurance uh but what I

find a little unfair about this is we

did nothing wrong like we didn't do

anything in fact our claims I think were

fair and I don't think they were

defamatory at at all uh but either way

the price goes up we're happy to pay

we're like sure we don't care as the

years go our Channel starts getting

bigger and the channel from an insurers

point of view gets more risky right

they're like you're bigger you get more

views therefore uh more eyeballs see it

you need to pay more money always happy

to do that fine whatever at one point

the insurance company we had been using

says okay you know what we actually

don't want to do this anymore for

whatever reason you're not being renewed

this year so we go to our insurance

broker and we're like okay what do we do

he's like well I can shop you around a

bunch of more policies what do you want

and we're like well we just want similar

coverage he goes great so he goes around

they work with a bunch of people and

they're like looking for a while we can

start getting nervous we start getting

close to the deadline of when we have to

renew and because it's kind of a big

deal you don't want to lapse your

coverage because then you say something

it's not covered whatever so uh finally

we're getting down to the wire he's like

look you know I do have this one one

insurance company we can go to I don't

know kind of like eh we can go to them

so we're like yeah dude well anything

finally he comes back he goes great news

they're going to do it and we're like oh

awesome is it more expensive he's like

yeah it's like like 40% more expensive

we're like we don't care that's fine

we'll pay it so he goes great uh sign

this whatever and we're good so we sign

it and we're like great little did I

know these guys had put um a special

exclusion two exclusions actually that

are relevant uh the biggest one in this

policy was on page like 31 and it said

you know we are excluded from covering

it's all these things they won't cover

um they're like we won't cover

defamation now that's the only reason

we're buying the

insurance but we don't see it now

there's a lot of like whose fault is

this is this the fault of the

underwriter for not flagging it is it

the fault of our broker for not telling

us cuz he's the expert is it our fault

for not reading the whole all 50

something pages of the contract we're

not Insurance experts but should we have

Reddit should we have hired a lawyer

right I'm not going to get into all of

that in this video the point is there is

this

um there's this exception in the fine

print that we never hear about and

there's also an exception from what they

call like digital assets like it's like

they're excluded from covering it if

it's about digital Assets Now if you

seen my

content all the videos are well not all

of them but a a a a lot of videos are

about some type of digital asset so it's

like they wrote a policy charges 40%

more and then every single part of the

policy is like just drawing a box where

it's like we won't cover anything that

this channel talks about um so so anyway

I mean I guess that's good business for

them if they can get people to like sign

it and it was it was sent to us like by

our broker they're like they're like

yeah this is the only guy that'll cover

you here's the only thing you can get

we're like okay great so we pay for this

for like two or three years I I forgot

the exact um I have to pull up the exact

emails of like when we first signed with

these guys but um we pay like tens of

thousands of dollars for this

insurance that does not cover

us after so now the whole Logan Paul

stuff happens we call our broker they

say no no no no uh call our broker they

file with the insurance company the

insurance company says no we're not

going to do that the broker starts

freaking out it's the first time they've

heard of this they had no idea this is

all in writing too like it's actually

crazy what they put in writing they're

like yeah we had no idea that this was

this was part of the thing we didn't

know

so um yeah that's the that's the full

story of what happened I mean it's kind

of tough because by the letter of the

policy it's kind of like did the insurer

do anything I mean they just offered us

a deal and we took it so it's more like

okay well the broker anyway we're

talking to like people cuz we're like

dude how can we pay tens of thousands of

dollars for insurance that doesn't

insure the thing we paid a broker to

find us it's like paying a broker to

find you car insurance and then they

like sell you like car insurance that

excludes any type of accident that

includes something with four wheels like

that that's literally what this is like

but now we're in this crazy position

where where we're having to like talk to

lawyers about if we need to like lawyer

up versus the insurance company that's

supposed to be paying for our lawyers in

the other CA like it's so stupid we're

now having to be like wait no I think

you scammed us I um also to the broker

like we're in this ridiculous situation

where we should have had Insurance to

protect us if our insurance didn't pay

up because now we got to talk to all

these other lawyers too um yeah

it's so frustrating and by the way not

only are we now having to look at all

our options for what to do about all

this um I have to read you this dude the

broker not only admitted he didn't know

what was in the policy he put in writing

that the underwriter didn't know what

was in the policy so he says the quote

an email from blank never mentioned that

this exclusion was being uh removed it's

not common for agencies or Underwriters

to read through every line and exclusion

of every policy we received so while we

could have checked the policy to see

that defamation was excluded some fault

lies with the carrier for not disclosing

this to us when it was

quoted what so they're just pointing

fingers at each other but the person

actually affected is us

so um and then and then they also say

they not only didn't know what was in my

policy they have apparently sold may

have sold this policy to other people uh

in another email they say it looks like

it's going to have to go up the ladder

at the insurance company to find out why

this wasn't disclosed to us earlier uh

that this exclusion was in there I've

been told by the underwriter that this

has his full attention I think he might

be really concerned because they have a

few other accounts with this insurance

company and if this exclusion is on all

of them then it's going to represent a

larger problem for their business so

this may have been sent to tons of

people who think that defamation is

excluded for them as well H and it like

actually isn't I just think it this is

so crazy to me that we're um in this

situation but you know uh we are and

ultimately now we're selling shirts I

mean that's how we got here that's how

we got selling this very cool very nice

shirt that you should definitely buy uh

because I haven't even calculated how

many shirts I need to sell to make up

for this but it's a lot okay so if you

could help out that would be very

appreciated pre-order is for 14 days I

believe we got this shirt we got a lot

more you can go check it on the website

coffeezilla store but either way that is

the story of how I got scammed

yes me coffeezilla got scammed for a

million bucks we got Dylan danis we got

fine printed whatever you want to call

it tough man tough let me know if you

have a similar story in the comments

below because a lot of people I've

talked to actually are like yeah I've

had the same experience with insurance

not media insurance but they're like

yeah I had paid for insurance that

ultimately I guess that's their job is

to not pay like they they don't

obviously they don't make money from

paying out a million dollars on a policy

that they maybe got paid like 30k for so

they make money from not paying out

claims uh so I'm interested if you guys

have stories below of times where you

had something similar happen in your

life I want to know about it either way

thanks for watching you can appreciate a

little um uh pain at my

expense I I I'm laughing because we've

I've had a little bit of time to process

this it's almost been a full month now

so sitting with this oh actually a

little over a month so I can appreciate

the irony of the situation but when it

first happened let me tell you I was not

happy I was sending some very angry

emails I was like and yeah that's

basically it uh don't forget go get

yourself a shirt you know thank you

coffeezilla I'm suing I really really

got to sell shirts

now all right goodbye