Social Media Risks

Start-up companies in all industries are relying on social media in some form. Whether it’s Facebook, Instagram Twitter, Linkedin and any of the other emerging platforms – every industry is embracing social media to some extent. Standard general liability policies include coverage for many media liability perils. However, the risks that come with post information online were not considered  when the policies were written twenty to forty years ago.

Risks include:

  • Libel
  • Sending messages seen as spam, prosecuted under the Controlling the Assault of Non-Solicited Pornography And Marketing (CAN-SPAM) Act
  • Disclosing non-public information about a publicly traded company, prosecuted by the US Securities and Exchange Commission
  • False advertising, prosecuted by the Federal Trade Commission
  • Creating misleading content for search engine optimization, prosecuted by the Federal Trade Commission
  • Discrimination in hiring from looking at someone’s social media, which is subject to several federal and state regulations
  • Unauthorized distribution of third party material, a violation of the Digital Millennium Copyright Act
  • Deleting information once on social media, which can lead to allegations of destroying evidence and can violate several federal laws

Many regulated industries can be subject to additional oversight, like the Gramm–Leach–Bliley Act that requires financial institutions to safeguard customer information.

Contact an expert broker today to discuss better protecting your startup against emerging risks.