Social Media Insurance Policy Information
Social Media Insurance. Today, social media businesses, consultants, and PR agencies are up against many potential risks.
A business that uses social media or has employees that use social media are at risk of being sued for copyright violation or social media posts that are seen as offensive.
Employees posting on social media platforms on behalf of the company can often make a costly mistake like uploading material that violates another business's or individual's privacy.
It should be said that despite the many benefits that social media has introduced, it does have its share of downsides and risks, which have to be acknowledged but also mitigated.
Social media protects your business from employees' harmful social media posts with rates as low as $6.99/mo. Get a fast quote and protect your company's reputation now.
Below are some answers to commonly asked broom and brush manufacturing insurance questions:
- How Much Does Social Media Insurance Cost?
- Why Do Businesses Need Social Media Insurance?
- What Are The Risks That Social Media Insurance Can Help To Protect Against?
- How Much Does Social Media Insurance Work?
How Much Does Social Media Insurance Cost?
The average price of a standard Social Media Insurance policy for small businesses ranges from $.49 to over $6.99 per month based on number of employees.
Why Do Businesses Need Social Media Insurance?
Social media posts live forever... Often forgotten or unnoticed, posts on your social media pages can come back to haunt you years down the road - potentially damaging careers, opportunities, and reputations.
This is where social media insurance can help by allowing social media users to detect, locate, and delete potentially offensive posts - using AI driven technology.
Following are the two main reasons why social media insurance is needed by businesses:
For Pre-Employment Screening
Pre-employment social media screening for potential hires can prevent future damage to your company's public image.
For Current Employees
Perform one-time or recurring HR screenings for current employees to ensure your company's reputation and online presence won't be harmed.
Think of it this way, as a business that uses social media to promote products, and services, you need to be careful about what is posted.
While you may assume that everything you post is carefully checked to ensure it is politically and morally correct, it still does not protect you from people who don't like what you say.
You may also encounter claims of your business stealing their ideas and intellectual property. When that happens, do you have money to pay a lawyer to defend your business, even if it is a frivolous lawsuit?
What Are The Risks That Social Media Insurance Can Help To Protect Against?
A few risks associated with social media and why businesses should have social media insurance include but aren't limited to:
- Privacy concerns - Today, given the sheer amounts of data being collected, used, and analyzed, privacy concerns are more real than ever before. A slip-up by an employee can cost the company big time if they are sued by those whose privacy was violated.
- False information - Social media is by design addictive, and that often results in distraction. Users are easily disengaged from real-world interactions or have a misguided sense of relational status, leading to unforeseen effects for businesses.
- Bullying and other misdemeanors - Bullying, intimidation, groupthink, and peer pressure is magnified on social media. It often has disastrous effects for those who are a target of them.
- Liability - Businesses/individuals participating, receiving, and posting information on social media, are also at significant liability risk. Even something posted by an employee can have blowback on the business.
Most Popular Social Media Companies
Following are the top 10 most used social media networks as of 2021:
- Facebook (Meta)
- WhatsApp (Meta)
- Messenger (Meta)
- Instagram (Meta)
How Much Does Social Media Insurance Work?
It should be said that social media insurance is relatively new. The cutting edge nature of social media insurance means that the industry is somewhat fragmented.
However, many insurance companies are starting to use technology, to minimize liability and consequently make it easier to avoid becoming a target of lawsuits and other liability claims.
Some insurers offering social media insurance use disruptive technology like Artificial Intelligence (AI), which is designed to reduce risk, educate employees and prevent anything from tarnishing a business's image.
AI-based social media insurance can be deployed either pre-employment or for those who are currently employed at the company. The system is designed to help protect employees and consequently the company they work for.
The pre-employment part of the insurance system reports individual user statics. The pre-employment systems have to be FCRA and EEOC compliant.
So, as a business using social media insurance that leverages AI, it is equally essential to ensure that the software has received all the relevant certifications.
Once a business buys or licenses the software, they need to send out invitations from their Admin Dashboard to users. The users can be company employees and those that they are vetting before joining the company.
The employee or aspiring employee receives an email from a third party with a link to a website. Once on the website, they (employees) are in a secure zone, from which they sign into their social media account or the company's account.
After signing in, the technology will start to scan the entire account, particularly all the posts the individual had ever made right from when the account was created. After completing the scan, the platform will list all the potentially harmful posts.
To understand why they are harmful, the posts are categorized into half a dozen categories. Users then have the option to delete posts that are deemed potentially harmful. If anything deleting these posts will ensure no harm to the brand's image. Once users have gone through all the steps, they can exit the system.
Businesses with social media insurance can use the technology as part of their vetting process to ensure that they don't hire someone who might pose a potential risk to their image or brand identity.
Commercial Insurance And Business Industry Classification
- SIC CODE: Description for 7379: Computer Related Services, Not Elsewhere Classified
- NAICS CODE: 541511 - Custom Computer Programming Services
- Suggested ISO General Liability Code(s): 96930 Web Site Designers
- Suggested Workers Compensation Code(s): 8803 Auditor, Accountant, or Computer System Designer or Programmer - Traveling, 8810 Clerical Office Employees NOC
Description for Description for 7379: Computer Related Services, Not Elsewhere Classified
Division I: Services | Major Group 73: Business Services | Industry Group 737: Computer Programming, Data Processing, And Other Computer Related Services
7379 Computer Related Services, Not Elsewhere Classified: Establishments primarily engaged in supplying computer related services, not elsewhere classified. Computer consultants operating on a contract or fee basis are classified in this industry. Establishments primarily engaged in producing prepackaged software are classified in Industry 7372; and those engaged in offering data processing courses or training in computer programming and in computer and computer peripheral equipment operation, repair, and maintenance are classified in Industry 8243.
- Computer consultants
- Data base developers
- Data processing consultants
- Disk and diskette conversion services
- Disk and diskette recertification services
- Requirements analysis, computer hardware
- Tape recertification service
Social Media Insurance - The Bottom Line
Social media insurance makes sure that you're protected in every way possible. If your employees use social media, ensure that you have at least social media liability insurance shielding you from potential future problems.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Artificial Intelligence
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing
- Electronic Data Processing Equipment
- Internet Business
- Internet Service Provider
- IT Consultant
- Online Store
- Social Media
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.