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Social Media Insurance Policy Information

Social Media Insurance

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:

What Is Social Media Insurance?

Social media insurance is a type of insurance policy that provides coverage for businesses and individuals against potential losses or damages resulting from social media activities.

This coverage can include protection against libel, slander, privacy violations, and other legal issues that may arise from the use of social media platforms. It may also cover financial losses due to online reputation management and crisis management in the event of a social media crisis. The coverage may be purchased as an add-on to a traditional liability insurance policy or as a standalone policy.

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 Community

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:

  1. Facebook (Meta)
  2. YouTube
  3. WhatsApp (Meta)
  4. Messenger (Meta)
  5. Instagram (Meta)
  6. WeChat
  7. Kuaishou
  8. TikTok
  9. Telegram
  10. Qzone

How Much Does Social Media Insurance Work?

Social Media Network

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.

What Does Social Media Insurance Cover & Pay For?

Social Media Insurance Claim Form

Social media consultants may face lawsuits for various reasons, including:

Copyright infringement: Social media consultants may be sued for posting content that violates copyright laws, such as using images or videos without obtaining permission from the copyright owner.
Insurance protection: Professional liability insurance can help cover the legal costs associated with defending against copyright infringement claims. It can also cover any damages awarded to the plaintiff.

Defamation: Social media consultants may be sued for making false statements about individuals or businesses on social media, damaging their reputation.
Insurance protection: Professional liability insurance, also known as errors and omissions insurance, can help cover the legal costs of defending against defamation claims. It can also cover any damages awarded to the plaintiff.

Privacy violations: Social media consultants may be sued for violating individuals' privacy rights, such as posting personal information without consent.
Insurance protection: Professional liability insurance can help cover the legal costs associated with defending against privacy violation claims. It can also cover any damages awarded to the plaintiff.

Breach of contract: Social media consultants may be sued for failing to fulfill their contractual obligations, such as delivering the promised results or failing to meet deadlines.
Insurance protection: Professional liability insurance can help cover the legal costs associated with defending against breach of contract claims. It can also cover any damages awarded to the plaintiff.

Cybersecurity breaches: Social media consultants may be sued for failing to protect their clients' confidential information from cybersecurity breaches.
Insurance protection: Cyber liability insurance can help cover the costs of investigating and responding to a cybersecurity breach, as well as any damages awarded to the plaintiff.

In summary, professional liability insurance and cyber liability insurance can provide coverage for social media consultants who face legal action for a variety of reasons. These insurance policies can help protect consultants from the financial burden of legal fees and damages, allowing them to focus on their work and providing value to their clients.

Commercial Insurance And Business Industry Classification

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.

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.

Information Technology And Internet Insurance

The information technology (IT) industry is constantly evolving and adapting to new technologies and trends. It is a critical component of many businesses and organizations, as it helps them to communicate, store data, and operate efficiently. However, the IT industry also faces unique risks and challenges that can lead to financial losses, legal issues, and damage to reputation. This is why it is essential for IT businesses to have commercial insurance to protect their assets and interests.

One of the main risks that IT businesses face is data breaches and cyber attacks. Hackers can gain access to sensitive information stored on a company's servers or systems, leading to data theft, identity theft, and other crimes. Insurance can provide coverage for these types of events, helping IT companies to mitigate the financial and legal consequences.

Another risk that IT businesses face is the possibility of equipment failure or malfunction. This can result in downtime and lost productivity, which can have a significant impact on a company's bottom line. Commercial insurance can help IT businesses to cover the costs of repairs and replacements, as well as any lost revenue or expenses incurred due to the equipment failure.

IT businesses may also face legal issues, such as intellectual property disputes or contract disputes with clients. Insurance can provide coverage for legal fees and damages, helping IT companies to defend their interests and protect their reputation.

Overall, the IT industry needs business insurance to protect against the many risks and challenges it faces. Without adequate coverage, IT businesses may be vulnerable to financial losses and legal issues that could impact their operations and success.

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.

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