To Tweet or Not to Tweet, Risk Management and Social Media
By Judythe Ann Michelle, Capstone Brokerage Risk Manager, September 18, 2017
Social media networking, namely Twitter, presents businesses with several advantages including reaching potential and current customers. However, when used without prudence, social media, and namely Twitter can also result in situations where companies can face various liabilities including reputation damage, defamation cases and intellectual property lawsuits. Therefore, it’s important for individuals and businesses to exercise prudent risk management before deciding whether to tweet.
What is Twitter? Twitter is an online news and social networking service where users post and interact with messages, “tweets”, restricted to 140 characters. Registered users can post tweets, but those who are unregistered can only read them. Even though tweets are indeed limited to 140 characters, the reality is that one tweet can have an infinite reach. This can be great for advertising and reaching potential customers but there have been horror stories where 140 characters have been known to create havoc and result in horrific circumstances.
From a risk management perspective, there are many things a company should consider before implementing social media, especially Twitter. For one thing, it’s very important that the person(s) who manages the account be professional and understands the business strategy of the company. In addition, while Twitter is meant to be informal, it is important not to allow the informality to cause a business to ignore rules and regulations. Employers must also be careful when allowing employees to engage on social media on the company’s behalf. Staff should be reminded that employee guidelines of professionalism extend to any online posts made by employees in the scope of their employment.
It is also important to understand how your insurance policies respond to social media. To avoid risk which could arise from third parties, companies might elect not to engage with third parties online. However, there are several missed opportunities that can result from this posture. Depending upon the level of trust of the individual managing social media, it can be an effective tool of communication.
Some of the best risk management tips for effective use of social media, include monitoring your online presence, never making any sort of promises, comply with regulations, and adhere to applicable advertising rules. In other words, do not use “deceptive practice” or “unfair competition” and follow laws and regulations, you would follow in any other form of advertising.
It is important to review your liability insurance policies to determine if there are potential risks when using social media, and be sure that you are adequately covered. It might make sense to purchase additional coverages such as third-party media liability coverage, or be sure that your general liability policy provides coverage for costs associated with internet publishing.
One of the best things about social media, namely Twitter, is it can allow a business to demonstrate its core values to an audience its wishes to reach. While this can be done in a matter of moments, it’s best to exercise caution before hitting send. We invite you to follow us on Twitter, @GetYourCapOn, to learn more about our comprehensive advocacy program. We intend to utilize this forum to further demonstrate our commitment to professionalism, empowerment, teamwork, accountability and leadership.
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