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To Tweet or Not To Tweet—Understanding the Risks in Social Media

By: Kenneth C. Hegel Jr.
Posted: July 13, 2011, from the July 2011 issue of GCI Magazine.

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The good news for brand owners is that insurance products have also evolved and will continue to evolve to protect and help shield them for the many risks associated with social media.

Assessing Risks

With increased exposure on the positive side, an organization also increases its exposure to unexpected or unforeseen liabilities, and most standard insurance coverages do not provide protection for claims involving social media.

When assessing the risks associated with social media, it is important to identify some of the risks that businesses face from both the internal and external use of the social media platform.

Libel/Slander/Defamation: Negative comments made by either employees and or customers about a competitor’s product and or services.

Proprietary Information: Employees engaging in social media could disclose valuable corporate information to the general public.