Social Media Addiction Litigation: A Critical Insurance Coverage Battle Unfolds

According to a recent article from Gen Re titled "When Likes Turn to Lawsuits – Social Media Addiction and the Insurance Fallout," and the Insurance Fallout," the liability insurance landscape faces a new challenge as social media addiction lawsuits against Meta and other platforms continue to multiply. What began with a significant Multi-District Litigation (MDL) filed by 41 state attorneys general in 2023 has grown to include nearly 2,000 active lawsuits as of August 2025, creating ripples through the insurance industry.

These lawsuits allege that social media platforms intentionally designed algorithms to maximize user engagement despite evidence suggesting potential mental health damage to young users. The litigation's scope is substantial, with both individual plaintiffs and school districts seeking damages for alleged addiction-related harms.

The insurance implications are particularly noteworthy. As detailed in the article, Meta's attempt to secure coverage under its General Liability policies has met resistance from insurers, including Hartford Casualty Insurance Company. The core dispute centers on whether insurers have a duty to defend against claims arising from allegedly intentional acts in platform design. This has sparked separate legal battles, with insurers seeking declaratory judgment in Delaware and Meta filing counterclaims in California.

For insurance professionals, this litigation presents several critical considerations. First, it challenges traditional interpretations of General Liability coverage, particularly regarding intentional acts exclusions. The outcome could set precedents for how similar claims are handled across the technology sector and beyond.

Second, the case also highlights the evolving nature of liability risks in the digital age. As technology companies face increasing scrutiny over their product design decisions, insurers must reassess how their policies address these emerging risks. The distinction between intentional design choices and unintended consequences becomes crucial in determining coverage obligations.

With bellwether trials scheduled to begin in late 2025, the insurance industry awaits clarity on several key questions:

• Will courts view social media addiction as an occurrence under General Liability policies?
• How will they interpret exclusions for intentional acts in the context of algorithm design? 

For casualty insurers, this litigation serves as a wake-up call to evaluate their exposure to digital addiction claims and similar technology-related risks. The outcome may necessitate new approaches to risk assessment and policy drafting, particularly for insureds in the technology sector.

As this case progresses, insurance professionals should closely monitor developments in both the underlying MDL and related coverage disputes. The decisions rendered could significantly impact how liability policies respond to claims involving digital products and services, making this a pivotal moment for the insurance industry.