I bet that you would have never thought that this could be a reality. Twitter or you can say a social network insurance is a new product that insurance companies are coming out to provide an umbrella against any unsolicited real business losses caused by affected brand image by bad twitter waves.

These days social networks are a powerful mechanism to express your opinion and find people who support your view. These people can also spread the message and have the power to make or destroy a brand also.

For an example, consider the effect that the Facebook campaign had in Egypt recently. A small spark just created a wave which actually brought a huge crowd and ultimately caused the fall of their dictator.

Similarly, if you think about the iPhone location tracking story that was shared on internet recently spread like fire and in no time may have caused an irrecoverable damage to iPhone's brand value. A huge section of consumers may not even know the technical details but may just rely on what was shared on social network.

These type of waves are sometimes explicitly created with a pre-set mind to affect a particular product by rival companies. Hence, we need something which can safeguard companies from suffering losses due to this uncertain and uncontrollable acts. Again the principle of demand and supply along with identifying gaps in the market play an important role.

Thankfully, where there’s risk, there’s insurance.

Kiln Group, an underwriter at Lloyds of London who amongst other high-risk clients provides specialist insurance services for foreign correspondents, TV personalities and film crews operating inside war zones, have revealed that brokers in Canada are closely watching trends in social media and are beginning to develop policies that will provide coverage in the event of a mis-post.

Big companies are definitely going to like this product and i bet that celebrities and politicians will also shell out huge premiums easily to secure the brand values. Via: City News