Social media risk management needs to be on your NY business insurance radar.
Even if your organization is not currently marketing and/or communicating with clients through social media, it will be soon, making social media risk management a priority.
Even if your organization is not currently utilizing social media for market research for new prospects, it will be soon, making social media risk management a priority.
Even if your organization’s leadership is not currently blogging and/or distributing information through social media, it will be soon, making social media risk management a priority.
Please understand, Someday Social Media will be an intrinsic part of every corporate culture.
Where is the need for Social Media Risk Management?
In terms of Social Media (and the Internet), the assets at risk are not physical, but rather data, information, proprietary software, media lists, portfolios, to name a few.
George Redenbaugh, (Assistant treasurer and senior director of risk management for eBay), expressed this opinion in the Insurance Journal, the intrinsic assets of a Company are changing, Data and how you connect the data become the most important assets. This means that traditional insurance methods do not apply.
Insurance Carriers and Agents must adapt at the same speed that new technology is produced. Currently, this is not the case.
According to Travelers Insurance Risk Control approximately half of the adult U.S. population is actively using social media websites.
These adults spend on average 7 hours a week using social media sites such as LinkedIn, MySpace, Facebook, Twitter, YouTube, etc. For adults (think employees) comfortable these social media platforms that number increases drastically. Companies can try to block usage of these sites during the work day, but Mobile Internet applications on iPhones, Blackberry, Droid, etc make control impossible.
To certain extent cyber liability insurance addresses some inbound concerns of social media risk management.
The Rub
For many 21st century companies physical assets no longer hold the greatest loss value.
This is especially true for technology companies, many of whom derive their entire organizational worth from the data, information and intellectual property they control.
Does your Insurance policy provide coverage for the recovery of such property? Are you 100% sure? Would you bet your company’s future on it?
It’s important that you understand where your company currently stands on social media risk management.
Many insurance carriers are just starting to tackle the technology industry and many more write policies without a true sense for electronic data asset value.
Be aware of the deficiency in understanding of technology risks throughout the insurance industry.
Give us a call today at (518) 456-6688 or click here to contact us via email to discuss insurance solutions to social media risk management.