Frequently asked questions
How can social media damage my company’s reputation?
The exponential growth in mobile devices has driven unforeseen levels of immediacy in stories being shared. Negative public commentary about products and services can go viral at any time, spreading rapidly in ways that can be very difficult for unprepared companies to control.
Rogue states have also been seen to use social media for disreputable objectives, for example in the context of electoral manipulation. Such activities have tended to be targeted at specific companies, especially those that are important constituents of national economies.
Can media democracy escalate reputational damage?
Amid an atmosphere of wider public mistrust of corporations, greater media democracy has the effect of escalating reputational damage. Consumers now have a more accessible route to voice opinions and are more likely to post damaging content online than ever before.
The public is grappling with a shifting trust dynamic; in today’s world, many consumers struggle to identify products, services and companies in which they have a high level of trust.
How are demographic changes influencing reputational risk?
Younger generations, an ever-more important consumer segment, increasingly look to social media to consume news and opinion rather than traditional sources of media, such as established newspapers.
Whilst traditional news sources remain influential, they are losing ground to platforms that are not subject to the same stringent ethics and reporting quality. Negative stories on social media can be highly influential, can go viral, and can be difficult to target via traditional public relations methods.
Does reputational crisis insurance provide cover for any reputational crisis event?
The reputational crisis insurance product offers financial indemnity for certain costs and expenses that arise as a result of the occurrence of a ‘named peril’, which are listed in the policy as ‘insured events’.
Named perils policies operate in a different manner to ‘all-risks’ policies. Under a named perils policy, cover applies when the facts and circumstances of a given event match one of the insured events.
A key benefit of the reputational crisis insurance product is access to real-time data analysis via the Polecat Intelligence portal.
Regardless of whether an ‘insured event’ has been purchased by a policyholder, access to the Polecat platform is available. In fact, the Polecat portal tracks over 8,000 different data aspects relating to reputation – both positive and negative.
How is reputational crisis insurance different to other reputational damage insurance policies?
There are several similarities between reputational crisis insurance and other reputational damage insurance policies.
In all cases, we encourage comparison and wording review to ensure that you understand the terms and conditions that have been offered.
On a high-level basis, the main benefits of the reputational crisis insurance offering are:
- Meaningful policy limits of liability – available for business interruption, crisis consultancy and brand rehabilitation.
- Clear terms and conditions – the policy wording is under 15 pages and uses clear language.
- Crisis consultancy support – available on both a pre and post crisis basis from a leading global consultancy.
- Brand rehabilitation – the policy pays for promotional and advertising costs, designed to help a policyholder recover market share and sales.
- Artificial-Intelligence powered data analysis – helping the business executives, and other functions, understand what open-source data says about their brand in real-time.