In the Internet and social media era, news travels at the speed of light and companies are under constant scrutiny.
A single error or unforeseen event, such as a government investigation, a cyber incident or an injury or death of an executive, could swiftly impact or damage a company’s reputation and potentially cause significant financial damage.
Many insurers offer cover for Public Relations (PR) expenses or Crisis Costs when you purchase particular types of insurance, including Management Liability and Cyber Liability.
Key cover
PR expenses or Crisis coverage is designed to help companies by paying the cost of a PR or crisis management team to manage a sudden event’s reputational or financial impact. The cover must be triggered by an insured event specified by the policy wording.
The Importance of Reputation Insurance
- Rapid Response: businesses can swiftly engage PR experts, legal consultants, and crisis communication specialists to help in managing a potentially harmful incident. Immediate and professional response can assist in avoiding a reputational disaster.
- Financial costs: Beyond the immediate PR event, damage to a reputation, built up over many years, can be lost in minutes, along with customers, sales, and even stock price.
- Stakeholder Confidence: Knowing that a company has a backup plan in the form of reputation insurance can instil confidence in stakeholders, be they investors, employees, or customers. It signals a proactive approach to risk management and a commitment to maintaining a professional public image.
- Improved Decision-Making: When a crisis hits, companies often need to make quick decisions. Having this insurance cover in place can be a key part of your guidelines and frameworks, ensuring that decisions align with long-term reputational protection.
Reputation in the Age of Virality
With the proliferation of social media and 24/7 news cycles, information – both accurate and misleading – can go viral in mere moments. In this context, PR or Crisis management cover is essential.
Reputation, a company’s most intangible asset, often takes years, if not decades, to build but can be lost or damaged in minutes. Contact your local adviser today to discuss your risks and available options.
General Advice Warning
This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to be a constitute personal advice. We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular products features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.
