Social media is now a must for all SME’s and therefore the cyber risk increases on these businesses. Copyright infringement, privacy invasion, and accidental slander can all leave a business liable.
With small businesses easily attracting thousands and even millions of followers on social media, it can be easy for small businesses to fall victim to attacks or have claims made against them.
Copyright infringement can be unconsciously done. Simply by using some music you found for your latest video for Instagram could result in a large copyright claim against you. Or even just using a photo without the relevant permission could result in server consequences.
Also if your social media get hacked what would be the repercussions on your business? Imagine If you are unable to communicate with your customers on Twitter? Unable to promote products on Instagram? Or what if a hacker posts something derogatory on Facebook? All these examples could potentially be catastrophic to a business.
Businesses have become more reliant on social media, as a marketing tool, to get customers to their websites. So if you went a day without being able to use social media would that result in a financial loss to you? Certainly for E-Commerce websites the cost could be massive.
Many people now make buying decisions from social media and cybercriminals now go out to target your social media channels. They can often even hold digital assets at ransom and the cost to pay the ransom could be detrimental to any business.
So to answer do you need insurance for social media? Then you need to think about cyber as a whole and the impact that social media can have on a business. A simple one small tweet could have repercussions costing thousands.
Cyber insurance is to protect businesses from those cyber threats. With the dependence on social media and other cyber risks, cyber policies will enhance your business’s cover.