In today’s highly connected world where almost anything can be published via the Internet and social media, threats to the reputation and brand image of a company have become more common and damaging, leading to a need for products which protect companies against such risks.
AIG is underwriting a new online reputation insurance product for Irish businesses which provides protection against the risk of social media and other online crises. This product is being sold by a company called RiskEye and it allows policyholders to access a legal team and public relations advisers, up to a value of €50 000, should an event occur where online posts threaten the company’s reputation. Policyholders also have access to an online media monitoring service.
A recent survey showed that one in ten Irish businesses have experienced a social media crisis in the past year and a fifth of Irish businesses say that they are unprepared to deal with such a crisis if it occurred. An example of a company that has faced a social media crisis in recent years, is a gift voucher supplier called One4All. One4All was hit by a false rumor in 2013 stating that it was about to close, which was first spread by text message and then by social media. The company said that the impact was so serious that it would have collapsed a smaller company.