The Answer

Many organizations are concerned about their potential liability as a result of operating a radio station. This concern is valid, but easy to blow out of proportion. The FCC rules governing LPFMs are fairly minimal, and are not too hard to comply with. These are mostly rules you would never think of breaking anyway- common sense things like not pulling a broadcast hoax and causing a public disturbance with false information. The FCC is generally fairly generous with broadcasters. If there are minor rule violations, the broadcaster is commonly let off with a warning, and perhaps a deadline to bring itself into compliance. Major, repeated rule violations can sometimes incur fines. These are really pretty rare. Of the 11,000 radio stations in the country, only a handful are fined each month. Usually this is for only the most egregious behavior- shock morning jocks who throw live chickens out the 6 fourth story window of the station onto the sidewalk below for a cheap laugh- etcetera . I know of no case in which criminal charges of any kind have been brought against a broadcaster by the FCC.

Another issue is libel and slander. True violations of these rules are fairly easy to avoid with proper training of station staff. The FCC has recently revised it's policy with regard to obscentity and indecency on the airwaves. You can find their (quite racy and entertaining) notice about the subject here. You can technically be fined up to $11,000 per violation- it would be very uncommon for a low power station to be fined anywhere near that. If you are ever fined by the enforcement bureau, it is very common to appeal the fine and have it reduced by the FCC commissioners.

Technical violations are commonly let off with a warning the first time, as long as there was not serious danger to the public or some form of extremely irresponsible practice.

Broadcasters liability insurance is available, if that makes a parent organization more comfortable. We are not sure of the exact costs yet, but NPR quotes annual coverage for its' affiliates for $1,225. Their coverage pays for: liability arising out of any form of defamation; any form of invasion, infringement or interference with rights of privacy or publicity; infringement of copyright or trademark; plagiarism, piracy, or unfair competition resulting from unauthorized use of titles, formats, ideas, characters, plots, performances or artists or performers.

We will write more about the subject of insurance in the near future, after we get some quotes for low power radio stations. We expect the prices to be lower than what is listed above, because of the relatively small listener base of low power stations.