As of January 2021, there were 448 million social media users in India. And this number is only going to grow, with estimates predicting around 1.5 billion users by 2040. With instances of online hate, employee faux pas, and cancel-culture only increasing, brands and influencers all over the globe have started opting for social media liability policies.
What is a social media liability policy?
Social media liability insurance is meant to protect the policyholder from various risks arising from the use of social networking platforms such as Facebook, Twitter, Instagram, blogs on websites, etc. These risks include lawsuits or claims for defamation, harassment, invasion of privacy, violation of intellectual property rights or company policies, hurtful religious comments and more.
These instances of misconduct can sometimes be a result of corporate mishaps, the actions of one employee, or more commonly the subjective interpretation of content by groups and individuals. However, insurers do not provide any cover for intentional acts of misconduct such as posting false information or engaging in negative comments.
This type of insurance can be taken by brands, media firms, individual users, bloggers and social media influencers. In fact, in some countries, brands demand such insurance from any influencer they choose to partner with.
Aside from covering legal defence costs and other expenses, these policies can also help businesses safeguard their reputation through guidelines that need to be followed during posting and other social media engagements. Through these guidelines, they can avoid high-risk behaviour and follow certain protocols to minimize damage when it occurs.
In India, ICICI Lombard General Insurance’s media liability cover, and Bajaj Allianz General Insurance’s cyber safe policy include a social media liability cover.
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Interested in learning more about Liability Insurance? Check out our detailed blog on it here