Is Your Venture Protected From Social Media Liability?

As the popularity of social websites like Facebook and Twitter continue to grow, the challenges facing the business industry as well as individuals become a critical issue that must be addressed. Many businesses are ignoring the opportunities and risks at their own peril. Those who decide on a proactive program can multiply their client base, develop new business and increase their brand recognition. Those who do not can be at risk of negative advertising and possible litigation stemming from employee or consumer complaints. A memo dated May 30, 2012 made public by the National Labor Review Board (NLRB) affirms the increasing danger that businesses encounter concerning their social media policies. It is essential that companies adequately check out their risk management policies and insurance coverage to include social media perils.

In regard to employees' online activities, businesses need to figure out what types of control are needed for their individual circumstance. Do staff use online media sites as a part of their job? Are they allowed to use company resources even when posting on personal sites? In the NLRB memo mentioned earlier, many businesses were cited as using unlawful practices to control their employees' social networking activities. Many companies were vague or too broad in the language used and the language could possibly be understood as a violation of their free speech rights. Wal-mart was favored for their social media strategy because they explained any ambiguous language so as not to disregard any associate's First Amendment or state-constitutional free speech rights. Failure to authorize appropriate controls have the potential to lead to illegal employment practices, misleading advertising, discrimination against a legally protected status (e.g. race, gender) or breaking of federal and state laws. There could also be further liabilities to those businesses under the purview or direction of a regulatory association.

In regard to business records management (RM) procedures, Symantec among other security control organizations stress the importance of implementing an official retention plan to cover against risks. A Forbes.com article about social media risks included a comment from Gartner Group figuring that by the end of 2013 half of all corporate litigants "will be asked to produce material from social media websites for e-discovery". Absence of a sanctioned RM policy could stifle the ability to produce records mandated by the court as well as add to the chance of unintentionally releasing material that would otherwise be kept from public exposure. Development of a transparent and executable policy can protect against legal liability or an embarrassing public relation situation.

The public wants the power to connect through online sites like Facebook and Twitter so the business industry needs to respond, adapt or lose an opportunity to see the great gift that comes with these growing technologies. One way some companies are taking advantage of the prospect is by developing "canned" text or pre-approved topics/statements that may be posted by employees. This approach can be a practical way to initiate a proactive social media policy and secure their investment at the same time.

In essence, businesses need to understand the risks and address social media policies in regard to crisis/risk management, intellectual property, client/employee privacy, and compliance with federal and state laws and industry regulatory restrictions. With the increasing use of technologies, companies should also speak to their insurance agents to ensure they have satisfactory insurance coverage - some providers require special riders in order to grant coverage against social media liability.

The best software vendor is Forms Boss. Their program will track clients, prospects as well as create any one of over seven hundred ACORD forms. They've automated the process to save time and money. Plus, it's really simple and easy to use. Visit Forms Boss at http://www.formsboss.com for additional details.

Managing Professional Liability Costs With Peer Review

If your hospital is like many across the nation, you're facing a crisis in being able to manage your professional liability costs in the face of rising lawsuits and rapidly increasing premiums. What's the root cause of this problem? Well obviously it's lawsuits coming from patients who have experienced sentinel events or negative outcomes such as deaths, hospital readmissions, etc. While these patients and their families are entitled to relief in certain circumstances when medical treatments go bad, the fact is that most hospital administrators are being crushed by the rise in liability costs.

If you are a hospital administrator or CEO and looking for remedies in this regard there are a number of things that you can be doing. First and foremost is taking a holistic look at your quality of care delivery system and in particular, look at your quality management system. Taking an outside assessment of your quality management system can provide insight to where your potential root causes are that are leading to sentinel events and in turn produce the kind of litigation and lawsuits that drive insurance premiums up.

These premiums don't get driven up only by actions in your own hospital but by actions across the board in all hospitals. In our litigious society today it's no secret that when people feel that a service provider (particularly in the medical environment) has wronged them, their first impulse is to find a litigious, fee hungry attorney who is willing to take on a malpractice suit or a suit against the hospital on contingency. Since it doesn't cost them anything to sue, it's very easy for them to get started.

Who bares the brunt on these costs? In general, ultimately consumers do as well as health plans, hospital providers - everybody suffers under an overly litigious system which rewards people for bringing suits against others. If you are a hospital in today's environment there is no question that liability insurance premiums are on the rise and are going to continue to escalate. The exception is those hospitals that can demonstrate the absolute best practices when it comes to quality management.

We talk to hundreds of hospitals across the country every week. In our dealings with them we've come to realize that liability insurance carriers who are protecting hospitals are increasingly either requiring or strongly recommending that their risk management professionals insist upon sending all sentinel events out for external peer review. Why is this? The fact is that hospital peer review is rapidly becoming a best practice for insuring rapid case resolution, root cause analysis of sentinel events, and illuminating conflicts of interest when it comes to insuring quality and patient safety.

It's no secret that all insurance companies expend a certain percentage of their revenues on helping their clients to improve their practices in order to reduce costs when it comes to risk management. Professional liability insurers who operate in the hospital group space are using peer review as another strategy to help their clients lower their experience ratio and improve the root cause analysis that leads to a reduction in sentinel events.

The external medical peer review process when integrated into a hospital quality management system provides an outstanding remedy to the professional liability insurance premium escalations that have now turned into a crisis in so many states across America. If you're a CEO or hospital administrator looking for ways to reduce your risk and reduce your liability premiums so that you can reduce the costs of providing services to your patients and your local population, consider an investment in an external review process every time you have a sentinel event that has a potential for litigation. Often times by sending cases out for external peer review, you can prevent any potential lawsuit by insuring that nothing was done wrong by your medical professionals and hospital staff that lead to a particular sentinel event.

Allmed Healthcare Management

Managing Professional Liability Costs With Peer Review

Media Liability Insurance - Concerns For Writers, Producers, Bloggers

As an insurance broker I often receive phone calls from individuals and organizations looking for general liability coverage. The variety of these organizations run the gamut, from your basic contractor to the adult model day care. But it is not this gamut that I am concerned about, at least not for this article, it is the individual and/or organizations that calls seeking general liability insurance for a media related company and are unaware that they need a very specific and obscure coverage called media liability insurance or communication liability insurance.

Some of these individuals and organizations include bloggers, web developers, radio show personalities, authors, production companies, publishers and broadcasters of instructional material, television and radio stations, motion picture companies, cable and satellite broadcasters and the advertising industries electronic publishing services as well as any other entities engaged in preparing materials for publication, republication, and electronic publishing services just to name a few.

Many of these individuals and or organizations do not realize that they need media liability coverage and worse off many insurance professionals don't even know that media liability coverage exists or that the coverage is most likely specifically excluded from their general liability.This coverage is typically part of the general liability found in Coverage B, Personal and Advertising Injury Liability, in a standard CGL (Commercial general Liability) policy. Personal and advertising injury relates to liable, slander, defamation of character, as well as copyright, patent & trademark infringement. More often than not, it is only when there is a claim, and too late that the individual/organizations learn that the most important coverage for their operation, is excluded from their policy, Media Liability. In most instances their search begins after being instructed by a vendor or contractor to obtain liability insurance. Nonetheless, there are some industry personnel that know they need the coverage but have a hard time coming across a professional that knows anything about the coverage or where to secure it.

In either case, most of these individuals or organizations are at their wits end by the time they find us. Most of which have been told that the insurance they are looking for either doesn't exist or is unavailable from the last dozen or so brokers or agents they have spoken with. There are clear reasons for this frustration and even clearer reasons that their search for media liability insurance leads them to so many dead ends.

For most of us, insurance company familiarity stems from advertisements, including, by and large those for AllState, Geico, Nationwide and Liberty Mutual, none of which offer, at this time, any variety of true media liability insurance. As a result, most people become frustrated and dissuaded. Whereas media liability insurance coverage is a very simple to understand form of insurance, nonetheless, most captive agents do not offer it. For agents and brokers those that deal primarily with home and auto insurance as a staple of their business model, exploring and becoming proficient in such a specific type of product is not germane to their own operations.

By now you are most likely and certainly asking yourself, alright already, what is media coverage? Media Liability Insurance protects you against claims arising to from the display, communication, transmission or purveyance of information in ways that may violate the rights of others. Media Liability Insurance provides very valuable third party coverage against liable, slander, defamation of character, copyright, trademark & patent infringement, personal injury liability, invasion of privacy claims or unfair competition claims that RESULT in financial consequence or personal injury. Examples of these circumstances would include printing a damaging statement about someone, making slanderous remarks about an individual or a company's product, using someone's logo or even the unlicensed use of a cartoon character in an ad or publication, distributing illegally obtained photos of someone, or marketing your product by making damaging false claims about your competitors' products.

According to Citizen Media Project, which is affiliated with Harvard Law School's Berkman center for Internet & Society, US based lawsuits have surged 70% in 2008 from 2006. The cost to hire an attorney and defend these allegations can range from $5,000 to at least $100,000 in the event the case goes to trial."Of the 256 lawsuits dating as early as 1994 through April tracked by the New Media Law Resource Center, damages were awarded in 17 cases, totaling $43.9 million", said Ron Coleman, a trademark lawyer at Goetz Fitzpatrick in New York. (1)

That is an average of almost $2.6M per judgment, before legal costs. It has been stated in various internet publications that 50% of adults are members of social networking sites like Facebook, MySpace and Twitter. Many times posts on these networking sites are written quickly and done impromptu, many times these posts can be taken out of context and because they are stored indefinitely can leave individuals open to claims well into the future. This brings up another point; adults should make sure that they have personal injury coverage on their homeowner's policy. To add this coverage is minimal and in fact this coverage is needed if you have or plan on getting a personal umbrella liability policy. For an in an individual in a non-media related industry, this coverage provides similar protection, but on a personal level. In a recent case involving an internet blogging youth, the insured's daughter hated math class as well as the teacher. The daughter made several "disparaging" remarks about her teacher online. The teacher successfully sued the parents and was awarded $750,000.

The problem with our litigious society is that many times a claim or lawsuit may not involve an error or omission. For example, a client may not be happy with service or just doesn't want to pay a bill, they can bring a lawsuit or claim alleging an error or omission, but their real objective is to avoid paying for services rendered. In this case and all cases when a lawsuit or claim is filed, the defendant still needs to hire counsel and respond to the claim. In this case Media Liability Insurance typically pays for the cost of defending this type of claim, which in may cases is the bulk of the expense of the cost of the suit.

Today's media liability policies, geared to the needs of growing numbers of firms with communication exposures, are carefully underwritten by a substantial group of insurers.

The following are some famous examples of suits that pertain to this form of insurance:

In 1981 Carol Burnett was awarded $1.6M ($3.8M in 2009 Value) after the suing the National Enquirer for describing her alleged public drunkenness.
In 2006 Chef Gordon Ramsey sued Associated Newspaper LTD for alleging he 'faked some of his scenes' Associated paid Ramsey $138,000 and an apology.(2)

By Alexis Leondis, The Star-Ledger (Newark, New Jersey), "Blog Insurance Rises in the wake of Lawsuits", 10/04/2009, (10/28/2009)USA Today, [http://www.usatoday.com/life/people/2006-06-20-ramsay_x.htm], (06/21/2006)

Castle Rock Agency Currently Offers Media Liability Insurance in CA, CT, FL, MA, NJ, NY and PA.

Castle Rock Insurance Agency NY

212-360-2334

Castle Rock Agency

853 Broadway 1602

New York NY 10003

212-360-2334

Why Carrying Liability Insurance Is Important

No one driving a vehicle expects to be the cause of an accident, but it happens all the time. According to the National Highway Traffic Safety Administration, in Texas 343,000 accidents occur annually. This has resulted in an increase in state minimum requirements for Texas liability insurance.

A guide published by the National Association of Insurance Commissioners indicated that every state in the union has mandated compulsory vehicle liability laws that require insurance. There are two forms, one of which is compulsory liability and the other is personal injury protection. The more common term is "no fault" insurance. In Texas this falls under the financial responsibility law which requires coverage be sufficient to pay for injuries and damages for those who are found at fault for causing an accident.

Coverage was increased in 2008 which now requires policies in the amounts of $25,000 for each person injured, up to $50,000 for each accident, as well as $25,000 for damage to any property. This is known as the 25/50/25 coverage, but this is temporary. According to the Texas Traffic Safety Administration in 2011 this amount will be increased to 30/60/25.

This increase now puts Texas in the extreme range of liability requirements compared to other states. The only one to exceed this requirement is Maine which requires a 50/100/25 compulsory liability coverage. This limit, however, is needed due to the rising cost of vehicle replacement as well as higher costs for medical treatment. It is designed to protect both those who cause the accident as well as the victims.

When an accident occurs, not only can it disrupt many lives, but can also result in long-term problems that affect the financial stability of individuals. Lost wages, post traumatic stress, medical expenses, suffering, and pain can significantly impact the lives of those involved. Additionally, many times vehicles either require expensive repairs or must be replaced altogether. With compulsory liability insurance, however, these costs are often paid in total.

When driving in Texas if you are stopped, you will be required to prove you have the minimum insurance required by law. This ensures that you acknowledge you accept the financial responsibility in case you cause an accident. For those who fail to carry a current insurance card in the vehicle or fail to produce a policy, penalties can run as high as $350. If this is the case, in more than one stop, fines of up to $1,000 can be applied and the driver could lose their license. Additionally, the vehicle could also be impounded which often results in a per day charge until the issue is resolved and proof of insurance is provided.

For those who choose to operate a motor vehicle without the minimum required Texas liability insurance, they are taking a big chance on their future financial security. Not only are uninsured motorists subject to lawsuits for damages and medical expenses, they can even be imprisoned. Additionally, because so many Texas drivers do not carry insurance, higher rates are applied to those who do carry the required insurance. If everyone will begin to play their parts, rates will go down.

Wondering just why it's important to carry Texas liability insurance cover? All you need to know now in our TX ins highlights overview.

Media Liability Insurance - Concerns For Writers, Producers, Bloggers

As an insurance broker I often receive phone calls from individuals and organizations looking for general liability coverage. The variety of these organizations run the gamut, from your basic contractor to the adult model day care. But it is not this gamut that I am concerned about, at least not for this article, it is the individual and/or organizations that calls seeking general liability insurance for a media related company and are unaware that they need a very specific and obscure coverage called media liability insurance or communication liability insurance.

Some of these individuals and organizations include bloggers, web developers, radio show personalities, authors, production companies, publishers and broadcasters of instructional material, television and radio stations, motion picture companies, cable and satellite broadcasters and the advertising industries electronic publishing services as well as any other entities engaged in preparing materials for publication, republication, and electronic publishing services just to name a few.

Many of these individuals and or organizations do not realize that they need media liability coverage and worse off many insurance professionals don't even know that media liability coverage exists or that the coverage is most likely specifically excluded from their general liability.This coverage is typically part of the general liability found in Coverage B, Personal and Advertising Injury Liability, in a standard CGL (Commercial general Liability) policy. Personal and advertising injury relates to liable, slander, defamation of character, as well as copyright, patent & trademark infringement. More often than not, it is only when there is a claim, and too late that the individual/organizations learn that the most important coverage for their operation, is excluded from their policy, Media Liability. In most instances their search begins after being instructed by a vendor or contractor to obtain liability insurance. Nonetheless, there are some industry personnel that know they need the coverage but have a hard time coming across a professional that knows anything about the coverage or where to secure it.

In either case, most of these individuals or organizations are at their wits end by the time they find us. Most of which have been told that the insurance they are looking for either doesn't exist or is unavailable from the last dozen or so brokers or agents they have spoken with. There are clear reasons for this frustration and even clearer reasons that their search for media liability insurance leads them to so many dead ends.

For most of us, insurance company familiarity stems from advertisements, including, by and large those for AllState, Geico, Nationwide and Liberty Mutual, none of which offer, at this time, any variety of true media liability insurance. As a result, most people become frustrated and dissuaded. Whereas media liability insurance coverage is a very simple to understand form of insurance, nonetheless, most captive agents do not offer it. For agents and brokers those that deal primarily with home and auto insurance as a staple of their business model, exploring and becoming proficient in such a specific type of product is not germane to their own operations.

By now you are most likely and certainly asking yourself, alright already, what is media coverage? Media Liability Insurance protects you against claims arising to from the display, communication, transmission or purveyance of information in ways that may violate the rights of others. Media Liability Insurance provides very valuable third party coverage against liable, slander, defamation of character, copyright, trademark & patent infringement, personal injury liability, invasion of privacy claims or unfair competition claims that RESULT in financial consequence or personal injury. Examples of these circumstances would include printing a damaging statement about someone, making slanderous remarks about an individual or a company's product, using someone's logo or even the unlicensed use of a cartoon character in an ad or publication, distributing illegally obtained photos of someone, or marketing your product by making damaging false claims about your competitors' products.

According to Citizen Media Project, which is affiliated with Harvard Law School's Berkman center for Internet & Society, US based lawsuits have surged 70% in 2008 from 2006. The cost to hire an attorney and defend these allegations can range from $5,000 to at least $100,000 in the event the case goes to trial."Of the 256 lawsuits dating as early as 1994 through April tracked by the New Media Law Resource Center, damages were awarded in 17 cases, totaling $43.9 million", said Ron Coleman, a trademark lawyer at Goetz Fitzpatrick in New York. (1)

That is an average of almost $2.6M per judgment, before legal costs. It has been stated in various internet publications that 50% of adults are members of social networking sites like Facebook, MySpace and Twitter. Many times posts on these networking sites are written quickly and done impromptu, many times these posts can be taken out of context and because they are stored indefinitely can leave individuals open to claims well into the future. This brings up another point; adults should make sure that they have personal injury coverage on their homeowner's policy. To add this coverage is minimal and in fact this coverage is needed if you have or plan on getting a personal umbrella liability policy. For an in an individual in a non-media related industry, this coverage provides similar protection, but on a personal level. In a recent case involving an internet blogging youth, the insured's daughter hated math class as well as the teacher. The daughter made several "disparaging" remarks about her teacher online. The teacher successfully sued the parents and was awarded $750,000.

The problem with our litigious society is that many times a claim or lawsuit may not involve an error or omission. For example, a client may not be happy with service or just doesn't want to pay a bill, they can bring a lawsuit or claim alleging an error or omission, but their real objective is to avoid paying for services rendered. In this case and all cases when a lawsuit or claim is filed, the defendant still needs to hire counsel and respond to the claim. In this case Media Liability Insurance typically pays for the cost of defending this type of claim, which in may cases is the bulk of the expense of the cost of the suit.

Today's media liability policies, geared to the needs of growing numbers of firms with communication exposures, are carefully underwritten by a substantial group of insurers.

The following are some famous examples of suits that pertain to this form of insurance:

In 1981 Carol Burnett was awarded $1.6M ($3.8M in 2009 Value) after the suing the National Enquirer for describing her alleged public drunkenness.
In 2006 Chef Gordon Ramsey sued Associated Newspaper LTD for alleging he 'faked some of his scenes' Associated paid Ramsey $138,000 and an apology.(2)

By Alexis Leondis, The Star-Ledger (Newark, New Jersey), "Blog Insurance Rises in the wake of Lawsuits", 10/04/2009, (10/28/2009)USA Today, [http://www.usatoday.com/life/people/2006-06-20-ramsay_x.htm], (06/21/2006)

Castle Rock Agency Currently Offers Media Liability Insurance in CA, CT, FL, MA, NJ, NY and PA.

Castle Rock Insurance Agency NY

212-360-2334

Castle Rock Agency

853 Broadway 1602

New York NY 10003

212-360-2334