Social media websites started off as personal networking tools. Now they are quickly becoming a common place for businesses, too. The benefit of sites like Facebook, Twitter, Linkedin, and YouTube for businesses is that it’s a free way to spread the word about new products, keep in touch with existing clients, and promote awareness of the company’s brand. But companies need to be aware of the risks associated with social media and take precautionary steps to protect themselves.

According to the Nielsen report, one out of every 11 minutes spent online in the U.S. involves social networking.

While these sites started out among teenagers and a younger audience, the audience now is becoming broader and older. The greatest growth for Facebook has been between the ages of 35-49.

1. Legal liability for defamation, harassment, privacy violations and other possible claims.
2. Leaking of information that may decrease the ability to be competitive.
3. Damage to reputation through false, degrading or reckless comments.

By taking a well-planned approach to using, monitoring and responding to social media, you can reduce your exposure to liability.

1. Monitor Online Presence
• Keep track of not only your online posts, but posts customers and competitors make about your company.
2. Create a Plan
• Have a written policy that covers all forms of communication. Employees should be prohibited from communication that is illegal or go against your company’s interest.
3. 3. Train Employees to Follow the Policy
• Make sure employees understand the policy and inform them of consequences for violating them.
4. Enforce the Policy
• Be consistent about enforcing the consequences.
5. Prepare for the Unexpected
• Have a crisis management plan. This may include managing negative publicity, removing false postings, or purchasing cyber risk coverage with your insurance agent.

Information from Travelers Insurance.