Is your company keen to get involved in Social Media but concerned about the potential bad press? Just take out insurance to cover it.
As reported by the Financial Standard online - Peter Fraser, a founding partner of social media intelligence company says:
"...boards are caught between their Gen X and Y employees and shareholders, realising that they have got to understand the risks associated with social media."
And now there’s a product designed to help!
"In fact, there was a product released six months ago by a major global insurer that can provide an injection of capital if you can truly prove the loss of revenue linked to a particular event, and there are 17 defined perils including an adverse social media outbreak and misuse or theft of private information."
Is it possible to safeguard your company’s reputation?
This is very interesting.
ReplyDeleteI like the idea of being able to ensure yourself against damages that resulted from SM mishaps, however, will it be effective. You are quite likely if something goes wrong on SM to suffer from damage to your brand (bad eWOM), this could cause longer term losses which even if off set a little by a cash injection, you will still need to do a lot to gain the reputation you had before the mishap. It might therefore be worthwhile to rather have a clearly defined and effective SM strategy and not only rely on a possible cash claim from an insurance company.
Ross
And I wonder how difficult it would be to "prove the loss of revenue" from a SM incident?
ReplyDeleteAs Ross says, probably better to do it right up front, rather than relying on insurance. But, then again, to what extent can an organisation control everything that happens on SM?