Risk Management: Social Media Liability for Businesses

Risk Management: Social Media Liability for Businesses

Risk Management: Social Media Liability for Businesses

Progressive recently settled a claim with a family whose daughter was killed in an auto accident. The victim’s brother claimed that in an effort not pay the family the full claim amount, they actually defended the other driver in court. The situation is unique not only because of the unusual claims, but how the information reached the public. Matt Fisher, Katie Fisher’s brother, detailed his accusations in a blog post. Social Media Liability is an extremely important topic, that many small businesses are unaware of.

The post erupted in the news and sent thousands to the company’s social media sites. More than 2,000 people took to Twitter to denounce the company. Over 1,000 tweeted they dropped Progressive as their insurer, and another 1,600 said they didn’t want to do business with Progressive. All this occurred in a four day time period.

Progressive settled the case with the family, but the negative publicity has raged on. The incident shows an increasing business liability risks as more companies integrate their businesses into social media realms.

Social media allows companies to interact with their customers in real time. It is a great connective tool, educational resource, and way to build stronger relationships with customers.

Facebook, Twitter, Pinterest, and LinkedIn can help make your business more successful. It also exposes you to additional risks. Pictures, articles, and information can be shared immediately. The speedy delivery of information also increases a businesses’ risk of court cases and publicity nightmares.

It is a particularly unique risk for small to midsize business owners. Large businesses invest money, time, and training into their social media strategy. Small business owner simply don’t have the resources, or the legal aid to handle a social media blooper that goes sour.

Take the time to train your employees and develop a social media policy. Keep careful tabs on what you post, and how you interact with your customers. It will help you avoid headaches later down the road.

At the Rubin Group, our New York agents/brokers are trained specialists in all types of Business insurance, both in New York and all across the nation. We have the expertise to understand your needs and can design a program that allows you to get the most for your insurance dollar. Contact us today for more information on our New York Business insurance programs.

Source: The Wall Street Journal

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