Risks and Liabilities of Social Media Influencer Marketing

Nov 24, 2021

Influencer Marketing is big business—with almost three-fourths 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 risks they introduce by leveraging this marketing strategy—which 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—from the more traditional celebrity-types with millions of social followers, like Kim Kardashian, to more niche “nano” and “micro-influencers” who have much smaller followings. 

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

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 here

Jencap’s broad brokerage and binding authority market access, along with our suite of exclusive programs, provide unmatched insurance solutions for your clients’ unique needs. Contact us today to learn more. 

The Jencap Professional Lines Insurance Team

The Jencap Professional Lines Insurance Team

Whether it’s professional, management, or cyber liability, Jencap’s experienced brokers stay on top of industry trends and one step ahead of the competition, so they can offer the best guidance to you and your clients. Armed with decades of experience, Jencap’s dedicated professional lines team works tirelessly to navigate difficult risk placements, strict security control requirements, ever-changing market capacity, and unpredictable rate fluctuations.
Business Insurance | celebrities' | influencer marketing | micro-influencers | Professional Liability Insurance | social media



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