04.05.11
Social Media Package Insurance
Companies may use social media sites, such as LinkedIn, Twitter and Facebook, to communicate and interact with customers. While this may help keep marketing costs down, companies are also exposed to new and greater risks. Past marketing techniques reached a smaller audience at a slower pace, and companies had more time to address controversial issues, minimizing legal costs and liabilities. With the internet and mobile technology, the larger scale alone may result in liability costs of hundreds of thousands of dollars more than in the past.
“What happens if an employee posts instructions on how to complete a particular task and an individual gets injured while following the posted instructions? Would a company’s general liability policy cover it? Or what if those posted instructions are determined to be inaccurate and someone suffers a financial loss? Would a professional liability policy pick up the loss? It’s unclear, maybe yes, maybe no.”
Insurance companies offer solutions for these types of exposures. Many include protection against defamation, including libel and slander, intellectual property, including copyright infringement, and invasion of privacy. They may also include cyber liability and privacy liability. Please contact us if you want to know more about Social Media Insurance.
From Insurance Journal-National Region, March 7, 2011 issue, p. N12.