Social media may be a modern imperative for businesses looking to grow and build their brand, but it also introduces risk.
The stories of social media fails are legendary—companies using inappropriate humor regarding serious social issues, typographical errors, and pop references that backfire.
These examples represent reputational issues that can affect your company’s brand and its sales.
The mistakes in social media marketing that make the headlines can obscure other forms of risks presented by social media, namely privacy violations, security breaches, unauthorized use of intellectual property, and employment-based claims, among others.1
Liability Risks of Social Media
The risks that social media may introduce to your business are generally not new, but conventional risks delivered in a modern way.
To help manage these risks, you should:
Create a general social media policy for your company
Develop a specific policy for employees who use social media as part of their role
Consider a policy that also addresses personal social media use outside of work
Don’t create your policy in a vacuum. Rely on the diverse talents of your employees
Limit social media to designated spokespersons for better control over messaging
Train all employees on your social media policies
These risks may be covered by your existing business liability insurance, provided through a rider on your current policy or through the purchase of specialized coverage. Speak with your insurance agent to learn how to make sure you are adequately protected against the business risks of social media.
