April 25, 2011 by Canadian Underwriter
Canadian brokers may soon be able to offer corporations – and eventually individuals – coverage for social media posts that have damaged a reputation or created a liability, cbc.ca reported.
Malcolm Randles, an underwriter for Kiln, a subsidiary of Lloyd’s of London, told CBC Canadian brokers are expressing an interest in offering this type of product to clients, and that Kiln is working on developing a product to address this risk.
The use of social media in the corporate world brings with it the risks of privacy lawsuits, intellectual property infringement, and defamation.
“The liability risk stems from the fact that many companies don’t appear to be establishing clear, written policies for social networking,” Eric Dolden, a Vancouver-based insurance lawyer with Dolden Wallace Folick LLP, told cbc.ca.
The demand for social media insurance coverage is mostly for corporations, but Dolden predicted personal insurance for those using social media is about five years away, cbc.ca reported.
An individual who posts negative comments about a boss, workplace or brand may find themselves on the receiving end of a lawsuit brought forward by the boss, organization or brand that was the subject of the post, Dolden continued.