In today’s modern era, social media networks have become the go-to sites for leaving bad reviews about business products. Whether it’s a restaurant or a clothing line, one way potential clients connect with a business is through its online presence.
Online reviews can make or break a brand’s image.
Multinationals can land themselves in hot water if a client threatens them with a lawsuit. However, unlike corporate or multinationals, small-scale business can be permanently shut down, within hours, if they are accused of fraud or given negative feedback.
As an entrepreneur, you are aware of start-up failures, and risks involved in running an enterprise. Your social media presence creates the platform on which your business operates smoothly.
What You Should Do in Case of Defamation
The first step a business should take when accused of defamation is to call an attorney. An attorney will be able to guide you through procedures.
Secondly, make sure you have insurance to cover you. If your business does not have insurance to cover legal costs, you will land yourself in hot waters. Professional Liability Insurance, also known as Professional Indemnity Insurance, is the type of insurance every business should have in case they are pursued legally.
How is Insurance Beneficial?
For instance, if an unhappy or angry client or customer decides to leave a bad review on your social media pages or decides to accuse you of defamation—because services you provided damaged their brand’s reputation—they can pursue you in court.
Therefore, it is important you have legal coverage to help you avoid paying out of your own pocket!
Businesses need insurance so that daily operations are not put on hold. Not only will interruption put you behind schedule, it will result in financial loss! Time is of the essence, especially for new start-ups. Ensuring that your business is well-protected is number one priority!
Professional Liability Insurance covers the following:
- Defamation and libel
- Loss of data
- Loss of goods
Just imagine if an employee of yours loses a very important file that the client has entrusted to you. Or imagine if through negligence a manager for your organisation sends the wrong product that results in financial loss for the client. Not only will this portray the client’s brand negatively, the actions of your employees will lead to consequences for you.
To attract potential clients and customers, it’s important to show them why your business is reliable, responsible and better than your competition. That is why, insurance is necessary to avoid legal trouble and running your business smoothly!