When internet/cyber liability policies were introduced in the late 1990s, email was the primary electronic-communication tool at the time. It was not until recent years that Facebook, Twitter and LinkedIn exploded onto the scene, becoming key components of advertising and communication efforts of many banks.

Not all internet policies address the newly emerging exposures associated with “social media” and “social networking.” Banks are venturing down this path to market their products and communicate in “real time” with customers.

To address this exposure, ABA Insurance Services announced a new Social Networking Endorsement available at no additional charge to its Internet Banking Liability policy.

The new endorsement covers claims made by or on behalf of customers or regulatory agencies. It also includes coverage for regulatory correction expenses.

The endorsement will automatically be added to existing Internet Banking Liability policies upon receipt of state approvals.

For more information:
http://www.abais.com/Data/Sites/1/downloads/SafeTalk.Mar2011.pdf

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