Bail bondsmen, insurance agencies, insurance companies and even the National Association of Insurance Commissioners have found Facebook to be a great resource for marketing products, posting articles and spreading their messages. These entities also use social media such as LinkedIn, Twitter, or Google+ as inexpensive and quick ways to reach current and potential customers. Needless to say, using social media is a widespread business practice and certainly has its advantages. However, it is not without risk.
Ron Panko’s article “Avoiding Social Media Traps,” in the January 2012 issue of Best’s Review, provides excellent tips to help bail bondsmen, agents and insurance companies avoid the pitfalls associated with these popular and powerful new communications vehicles. For companies and, in particular, insurance agencies and producers there is a risk of exposing the individual and the organization to liabilities when using any of the social media sites. Panko has some great suggestions to help reduce the exposure:
Follow the guidelines. Before setting up any social media account, an agency, company or agent should first make sure that they understand the guidelines of the particular site on which they plan to post; they should also be aware of any social media guidelines imposed by the company or companies they are representing. It is important to ensure that the individual or company page of the social media site has a disclaimer so that consumers are aware of how the site and the information posted on it can be used.
Understand advertising regulations. Many state regulators require that companies monitor any advertising disseminated by its producers, and this includes anything communicated via social media sites. So it’s important to be aware of the advertising regulations in each state in which the company or agent holds a license.
Create a social media policy. Before any posts make their way online, a company or agency should use the aforementioned information to create a social media policy and training program for all employees. This policy will help employees know, for example, when to take a particular discussion offline so as not to publish any identifiable customer information that might violate privacy laws and expose the company to liability. Any social media policy should include a code of conduct so that all communications are professional. And a procedure should be in place to respond to criticism that may be posted; Panko suggests that one person within the organization be designated to respond to all postings, both positive and negative. And training is an essential component of any social media plan, policy or set of guidelines. As with most business tools, companies and agencies should ensure that employees are trained properly on social media policies and that all communications comply with statutory and regulatory guidelines as outlined therein.
In addition, agencies and agents may tend to stray outside of their normal operating procedures while using social media. For this reason, an agency or company should also create a social media strategy that is incorporated into all of the other business’ standard operating procedures. In short, while many current laws do not specifically address social media do’s and don’ts, any information posted on these sites can still, and often does, present a
host of legal and business risks.
Educate yourself and others within your organization. Read and understand the rules of each social media site you use and also be aware of any state insurance trade practices, advertising statutes and administrative rules that apply to social media communications within the state you are licensed. Company leaders or responsible agents should then use the information they’ve gleaned to implement written policies that govern the use of
social media. By obtaining and disseminating knowledge beforehand, companies, agencies and agents can avoid falling into what could be a costly social media snare.
* Read Ron Panko’s article, “Avoiding Social Media Traps,” in the January 2012 issue of Best’s Review.