Online Social Networking: A Brave New World of Liability
Social network website Facebook now claims more than 350 million active users worldwide, more than the population of the United States. Social network sites in total have now equaled e-mail in terms of usage by computer owners, according to a Nielsen survey. With the explosive growth of social networking comes uncharted new vistas of liability for both individuals and businesses. Already, words and phrases like "cyberbullying" and "textual harassment" are creeping into the English vocabulary.
Businesses are recognizing that social network sites present new channels to promote products and services, and venues to cultivate communities of prospects and customers. Many also have discovered they are windows into the personal lives of employees and job candidates. Of growing concern to risk managers and human resource officers is the increasingly blurry line between work activities and personal activities as employees bring their work, their office relationships and their job-related grievances online.
The potential liabilities of companies for their own and their employees' activities on social network websites range from copyright infringement to consumer fraud to claims of harassment and intimidation. Conventional loss control and risk management processes are maddeningly ineffective in the unconstrained virtual world of online social networks, making innovative new strategies essential for keeping a lid on potential liabilities. Additionally, risk managers need to be certain that their insurance programs are fully aligned with the threats posed by the social networking activities of both their companies and the companies' employees.
"Online Social Networking: A Brave New World of Liability," a new Advisen Special Report sponsored by Swett & Crawford, examines the liability exposures of online social networking, outlines risk management practices that can help reduce exposures, and discusses specialized insurance coverages available to offset financial consequences when things go awry.
Have a question about the paper? Ask the experts at Swett.
About Swett & Crawford
Swett & Crawford, headquartered in Atlanta, Georgia, is owned by its employees and two private equity firms, HM Capital Partners and Banc of America Capital Investors
In its national network of offices, Swett & Crawford serves independent agents and brokers through specialized Property, Casualty, Oil & Gas/Energy, Professional Services, Transportation and Underwriting Practice Groups. These groups provide access to commercial insurance products and programs, including property and casualty coverages, products liability, professional liability, commercial and public auto liability as well as a host of customized binding authorities and exclusive programs tailored to specific industries, businesses and professionals.
