Posted on 08 Feb 2011
Chartis Insurance UK has extended its directors and officers' policy to cover damage caused by social media.
The extension will pay for PR costs if confidential information is published by social media, and will also cover the cost of managing damage to reputation.
Chartis vice president of financial lines David Walters said: "The domination of the global news headlines by Wikileaks’ publication of leaked government documents is a vivid illustration of the power of social media. Although the focus has been on government there is, however, no room for complacency for business. In a recent interview Julian Assange, Wikileaks founder, said that 50% of the leaked material they were holding related to the private sector.
"Our objective in extending the policy was to be proactive in helping our clients to mitigate and manage potential reputational damage, and reduce the risks of shareholder suit and potential claim