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What Is Reputational Risk Insurance?

Reputational Risk Insurance

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As a businessperson, you know that your reputation is crucial to your success. Until relatively recently, there was little way to specifically insure your good name—but as times have changed, so have your options.

What is Reputational Risk Insurance?

There’s no single type of Reputational Risk Insurance. Instead, there are a clutch of options from which businesses can choose when seeking to protect their name, all of which have the same aim: lowering your risk of damage to your hard-earned brand.

Reputational Risk Insurance typically comes bundled along with other major risk policies, but it is also offered in a standalone form. These are some of the more common forms you’ll see Reputational Risk Insurance offered as:


What are the most common reputation-based risks?

According to Aon’s 2015 Global Risk Management Survey, which polled more than 1,400 representatives of both public and private businesses, reputation damage is a number-one concern. Specifically, the major reputational risks included:

Here’s the problem: it takes just one crisis to permanently harm your company’s image. What’s more, given that online sources such as social media are lightning-fast to pick up on these stories, you may find yourself scrambling to do damage control.


Should I invest in Reputational Risk Coverage?

If you’re wondering whether Reputational Risk Insurance is worth the expense, it’s time to ask yourself the hard questions about your business. Such questions may include:

What exact coverage do I need?

Unless your business is amongst the largest out there, you probably won’t need to select standalone Reputational Risk Insurance. Instead, you will likely opt for packaged coverage, where your traditional policy will be combined with a crisis management rider.

Before choosing your coverage, it’s important to draft a risk management plan to assess and control your greatest areas of risk. These are the crucial steps to take:



Damage to your company’s reputation can have major repercussions on your ability to not only make future sales but also connect with current and future customers going forward. Reputational Risk Insurance can give you the power to mitigate damage done by any number of adverse events, including accidents, hacks, and data breaches.

Restoring your reputation takes time and resources—and may be a futile effort depending on the severity of a given incident. Depending on your company’s size, status, and history, Reputational Risk Insurance may be one of the smartest moves you can make to protect your business.

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