SOCIAL MEDIA AND THE REPUTATIONAL RISK FOR BUSINESSES

Richard Finan, Director of Arc Legal Assistance, has been discussing the impact of defamatory comments made about businesses on social media platforms.

Alongside the rapid growth in the use of social media by companies in recent years, there has been a significant surge in defamatory comments and posts being made online about businesses. An almost 95% increase in the number of reported defamation cases brought by businesses between 2011/12 and 2013/14 demonstrates the reality of this issue.*

Whilst economic recovery has undoubtedly put businesses in better financial shape, the cost to pursue legal action against individuals making defamatory comments is still out of reach for many businesses, and this can lead to reputations being irrevocably damaged.

In response to growing concern, we have introduced a Social Media Defamation cover as part of our Commercial Legal Expenses Insurance policy. The cover provides legal costs for a solicitor to contact the author of defamatory online content as well as the website’s hosting company, demanding removal of material. The cover aims to limit any reputational damage by ensuring that defamatory comments are removed as quickly as possible.

Richard was speaking to Insurance Times. The full article can be found at www.insurancetimes.co.uk.

*Data sourced from www.theguardian.com

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