Insurance for Social Media Usage

This article published by Cozen O’Connor on social media insurance does a good job of explaining the thinking an organization should do about its insurance when adopting social media as part of its business.

The first thing is to be clear about the nature of your social media activity and the next is to look at your existing coverage and reach out to your insurance broker or agent to determine if you would be covered under the policies should social media activity result in a business loss.

Examples would be useful

Employment terminations and defamation come to mind as the most common scenarios for possible losses that would trigger insurance coverage but what about the corporate officer who creates a false name and bashes the competitors.  Is this a scenario that would trigger D&O coverage?  What if the company’s use of social media is poorly thought out and creates holes in their firewall, allowing their e-commerce website to go down?  I’d like to see an article that outlines the variety of possible scenarios and if and how a company could expect to be covered for such losses.

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