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Risks and Liabilities of Social Media Influencer Marketing

Nov 24, 2021

Influencer Marketing is big business鈥攚ith of marketers expected to incorporate it in some way into their marketing plans this upcoming year. Although social influencer marketing can be a very effective way to build brand awareness and capture new customers, businesses should be asking themselves about the they introduce by leveraging this marketing strategy鈥攚hich can include everything from misaligned expectations around content creation and PR fiascos to breaches of contracts.

Celebrities have long-partnered with companies to offer their endorsements and praise for a particular product, service, or brand. But the rise of social media has spurred a new flavor of influencers鈥攆rom the more traditional celebrity-types with millions of social followers, like Kim Kardashian, to more niche 鈥渘ano鈥 and 鈥渕icro-influencers鈥 who have much smaller followings.听

With these new marketing opportunities, however, come new risks and liabilities. What happens, for instance, if a company鈥檚 influencer posts negative claims about one of the company鈥檚 competitors? Or if they misrepresent the company鈥檚 product or service? Or if the influencer fails to disclose to their following that they鈥檙e receiving compensation for their reviews or endorsements?聽

As influencer marketing continues to grow, businesses need to consider all the potential legal and reputational risks there are when working with influencers, as well as the insurance coverage needed to mitigate these risks. Read more .听

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Business Insurance | celebrities' | influencer marketing | micro-influencers | Professional Liability Insurance | social media

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