Business Insurance

Manage the Risks of Social Media

With the increasing use of Facebook, LinkedIn, and other social media platforms in the workplace, companies can take effective steps to manage the risks of social media.  Many businesses are finding clever ways to leverage Facebook, LinkedIn, Twitter, and other social networking websites to their advantage.  While usage may be beneficial, high on the list of concerns should be the potential for employees posting information that could expose the company to legal liability, leak trade secrets, or damage the reputation of the company.

Although there is not absolute protection from lawsuits, companies that demonstrate a commitment to responsible use of social tools are in a better position to defend themselves.  The following steps can be very effective in mitigating the risks of social media:

Create an internal social media business-use policy:  Companies should notify employees that use of all forms of electronic communications in ways that are illegal, contrary to the company’s interests, or in violation of antidiscrimination policies will not be tolerated. This includes blogging, texting, and instant messaging.

Communicate the policy to employees and enforce it:  Employees should be trained to follow the electronic-use policy and be aware that their activities are being monitored.  Communicate established consequences for policy violations, and follow through when issues arise.

Consider cyber insurance:  This new form of business insurance is designed to pay for losses associated with data compromise as well as media or web content liability.  More information on cyber insurance is can be found here.


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