“… there is no shortage of reputational risks from social media and the Internet in general, from corporate manslaughter, money laundering, corporate corruption, and terrorism…”
With the boom in social media, interest in reputational risk has itself boomed. The term refers to a company’s risk of having its reputation damaged because of certain events or incidents and the fallout that takes place because of these incidents. In some cases, the effects can be severe enough to put a company out of business.
ReputationGuard was designed to help insureds cope with reputational threats, providing access to reputation and crisis communications firms Burson-Marsteller and Porter Novelli and coverage for costs associated with avoiding or minimizing the potential impact of negative publicity.
There are two categories of coverage:
- For reputation attacks: a public attack upon a company’s reputation. The costs of hiring communications experts from the Chartis panel and communications costs.
- For reputation threats: acts or events that the company believes, if made public, would have a material impact on the company’s reputation and would be seen as a breach of trust by the company’s stakeholders.
Insurers will not exclude any business segments but most interest is in those with revenues of $500,000 to $2 billion.