5 Reasons Small Businesses Should Invest In Social Media Insurance

Posted on: 21 January 2015

Protecting a small business includes opening insurance policies on all types of issues. Along with physical protection of your business, it's also important to have digital protection. When working with insurance brokers, one of the newest coverage options to consider is social media coverage. As social media websites like Facebook and Twitter become a way for businesses to grow, they also become a liability that could cost a business thousands of dollars.

There are five different reasons you should invest in some type of social media insurance. The coverage could go a long way and protect your business from being attacked, sued, or caught in legal trouble.

Hiring & Firing Cases

Many employers will now use social media to help decide on potential employee candidates. Accessing public information is legal, but an offended applicant could turn any social media prowling into a discrimination case. By having the proper insurance coverage, your broker can work out a deal to have legal and financial support whenever a case like this occurs.

Under a traditional agreement, items like this would fall under an EPL agreement. This is also known as an employment practices liability agreement. Special coverage will expand this agreement into digital domains and social media uses.

Social Media Posts

Posting on social media using your official business helps put yourself out there in the public eye, but also holds a lot of responsibility for your company. One misguided message could dramatically effect your business and cost a lot of money. While it's important to be extremely careful while posting online, it's also important to have protection if something goes wrong.

One form of insurance protection in social media posts is gaining compensation for defamatory or viral posts that can negativity affect business growth. For example, if you own a food restaurant and a post about a specific meal goes viral, you have the ability to gain compensation for a loss on that specific product. This insurance claim can only occur if you have the specific coverage set up.

Laws & Regulations

Traditional laws and business regulations often feel like muddy water when concerned with social media pages. This is why proper regulations and fines could have a huge impact on just a single social media post or even something you share over your official company page. A recent example of this occurred when a winery company retweeted an event promo for a business. Regulations prevented this from happening and the winery was facing big fines. When you're properly insured for something like this, the fines or punishments can be stabilized by a well put together insurance policy.

The type of coverage you need for this type of protection depends on the exact business you're in. By expressing your concerns, an insurance broker, like those at draydeninsurance, can help draw  up the best coverage and ideal protection for your needs.

General Liability Updates

Any business will likely have a protective basic policy known as a General Liability. Old versions of this do not typically cover the actions and use of social media. To help ensure that your business is protected, you can sign up for an updated general liability policy. Within this policy, you have the ability to add all forms of new technology including social media, text messages, and other features like your company website.

Employee Representation

It's impossible to control everything an employee does on social media and this is why protection can be put in place for the potential disasters that can occur online. For example, if an employee trashes the company, posts negative photos about the business, or complains about employment practices, then you can have the protection and resources to ensure that the proper actions and protection is available.

The word of mouth has a huge impact on your business and it's important to protect yourself in every way possible. Along with the insurance protections, special agreements should be made with employees about appropriate social media postings.

Social media is constantly changing so once policies are set in place, it's important to work with a broker on updating them when needed.