Companies using social media for business purposes need to be insured: ACE Canada

The business benefits of using social media are getting impossible to ignore, but a new paper and podcast from ACE Canada suggests lack of understanding around this new way of communicating can also put organizations at risk. “Be sure that you have adequate insurance coverage for your company’s social media activities and review the coverage parameters and amounts regularly,” notes Social Media: the Business Benefits May Be Enormous, But Can the Risks – Reputational, Legal, Operational – Be Mitigated? “Commercial general liability may not cover online content, and your company will need coverage not only for your own website, but for content you’ve placed anywhere on the Internet,” the paper advises. “Social media activity might compromise or leak sensitive company information (or client information) that could have legal consequences.” Risks may be reputational, legal and operational in nature. They can have an impact on privacy, intellectual property and employment practices, adds a statement from ACE Canada. “Once you’ve taken the steps to mitigate these considerable risks, your company will be in the best possible position to reap the enormous business benefits of social media participation,” says David Brosnan, division president of ACE Canada Property and Casualty and chief underwriting officer.