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Home > Blog > Social Media and Cyber Liability: When Is a Business At Risk?
THURSDAY, AUGUST 1, 2024

Social Media and Cyber Liability: When Is a Business At Risk?

macbook pro turned on displaying musicSocial media is now one of the most commonly used forms of marketing and advertising. It provides an opportunity for businesses to connect directly with customers.

It also ensures that a wide variety of content is available to their customers.

Yet, as a business, you still need to recognize that the content you use remains your responsibility. That is, you need to minimize any risks of lawsuits or negligence claims relating to it.

Your business insurance's liability coverage can help with covering costs later.

Litigation is Increasing

It is more common than ever for consumers and other website owners to sue a company over content on social media. Why does this happen? What are you doing that could contribute to this type of liability risk?

What you say in your advertising and communications to the public should be clear. Always take the time to make only true, verifiable statements. It is possible for a business to face lawsuits for libel and slander claims. This is true even when those claims occur on social media.

Be aware that your employees can also put you at risk here. Many companies allow employees to communicate with customers over social media. For example, a customer may post a question on your Facebook page. Your employee answers that question. Your business is responsible for the comments your employee makes.

If that employee says something wrong and someone suffers a loss, such as an injury, your company may be responsible.

There are also other risks associated with social media use by businesses. They include:

  • Copyright infringement that occurs because your businesses use content owned by someone else
  • Product disparagement
  • Right to publicity violations
  • Defamation

What You Should Do

As a business owner, establish clear guidelines for social media use. Choose only a seasoned professional who understands liabilities to manage your social media accounts. Work with your attorney to ensure employees have policies in place to govern social media use. Don't allow employees to share information or company policies on social media. This type of information could create a liability risk.

Be sure to update your business insurance as well. Doing so ensures you can minimize the risk of having to pay out of pocket for a claim like this. For more information about your business insurance needs, contact one of our insurance agents today.

Posted 12:32 PM

Tags: cyber liability
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