Kiln, a UK-based insurance and reinsurance underwriting group, has launched a new insurance product to help businesses restore their reputations after a crisis.
The insurer said that its reputational harm product, developed by enterprise risks team, will provide financial protection for companies to help them restore their brands and revenue streams when they become the subject of negative media coverage following an insurable ‘event’.
According to the Kiln, the product will cover the cost of hiring crisis PR and legal experts following negative media coverage as well as revenue loss that arises as a direct result of an insurable ‘event’ – including but not limited to: a product recall; a board or senior management members’ defection or behaviour; a health, safety and environment failure.
The product also covers regulatory investigation or intervention and a business continuity failure or a data breach – which triggers the reputational harm policy.
The product will offer security for businesses in the various sectors including manufacturing, food and drink, pharmaceutical companies and retail.
The launch of the product follows a research report from ComRes commissioned by Kiln, which reveals that more than half (52%) of consumers have changed their minds about buying from a company following negative media coverage.
The poll also revealed that just under a third of people (29%) have used social media to broadcast their complaints about a company to their wider friends and contact networks, while (37%) of people had decided not to buy from a particular company following comments from a company CEO, director or celebrity ambassador.
Kiln active underwriter Paul Culham said that today’s research shows that negative media coverage in print, via broadcast or on social media sites can have a significant, detrimental impact on a company’s reputation and revenue stream, which businesses cannot afford to ignore.
"Our bespoke product, which can be adapted to address each business’ risk exposures, will give companies peace of mind that they have the financial security to restore confidence in their brands and help protect their revenues," Culham said.