What is Reputation Insurance?

Business reputational damage involves anything from negative media coverage, social media backlash, data breaches and/or product recalls. Business reputation insurance helps protect a company from financial consequences and manage repercussions that come with reputational damage. It can provide financial security for issues related to crisis management, public relations campaigns, legal fees and potential revenue loss due to the damaged image. In recent years, we have seen the implications of certain company’s and people getting “cancelled”, especially with the rise of social media. Reputation insurance can help businesses respond swiftly to crises and reduce long term impact.

Google Reviews & Reputation Insurance

If your company or brand is facing negative reviews on Google, Yelp, Reddit, TikTok or any other social platform, reputation insurance can help. Below are all the ways this policy can provide support:

 

 

 

• Crisis Management & Public Relations Support: This policy could help cover costs of hiring PR experts or crisis management firms. These professionals can help you develop a strategy to respond to negative reviews, manage public perception and restore your company or brand’s image. PR experts and crisis management firms assist in crafting responses,  engaging with reviewers and launching a positive PR campaign.

 

• Legal Assistance: If the comments are defamatory or false, the policy may help cover legal fees such as sending cease-and-desist letters or pursuing legal action. This can help remove harmful content to your company or brand.

 

• Monitoring Services: Some policies offer reputational monitoring services. These tasks include tracking online mentions or reviews to promptly mitigate the situation before escalation.

 

• Revenue Loss Compensation: If the negative review results in monetary loss, some policies offer compensation for lost revenue. This allows company execs to focus on rebuilding their reputation as opposed to stressing about financials.

 

• Repair and Recovery Campaigns: Reputation Insurance may also fund campaigns aimed at improving the company’s online image. These campaigns often include running paid ads, promoting positive customer reviews or creating content to push down negative search results.

Overall, the policy provides both financial and expert support to mitigate damage and help you recover more efficiently.

Types of Policies

• Crisis Management Insurance: Under this policy, events such as food contamination and product recalls to workplace accidents and, cyber breaches. Costs associated with hiring public relations consultants and crafting a quick response to eliminate further damage from the incident.

 

• Business Owners Liability Insurance: Claims & lawsuits from 3rd parties are covered under this policy type i.e. claims that the insured (including employees) caused reputational harm to other(s) including libel  & slander lawsuits.

 

• Cybersecurity Insurance: This policy covers the increasingly common data destruction or theft, extortion demands and/or hacking events.

 

• Standalone Reputation Insurance: A standalone reputation insurance policy covers lost profits resulting from the harmful incident.

Note* Reputational Insurance specifically excludes coverage for negative feedback as a result of lowering the quality of their goods or services.

Why It Matters

Reputational damage is one of the greatest risks for an established or growing brand. Branding and public image significantly impacts how customers perceive your product or services. When negative reviews aren’t handled properly, customer loyalty and long/short-term sales are also effected negatively. Social media has become a public platform where customers, potential customers and stakeholders can interact with your brand or business. Customer perception and feedback can either work for or against your company. The way a brand responds and reacts to criticism strengthens or weakens it’s success.

If your business is in need of a reputation insurance policy, McShea Insurance is here to help. We have the experience, expertise and carrier relationships to match clients with ideal coverage. We go beyond finding the right policy for you. We also ensure that the insurance company stands by you when it matters most, so you have peace of mind knowing you’re fully protected. Reach out for a quote today: insure@mcsheainsurance.com.