MANAGING REPUTATION DAMAGE TAKES

As companies and organizations ponder risk transfer solutions to indemnify lost revenue and profit stemming from reputation and brand damage, experts say effective crisis management remains an essential part of mitigating such risks. Insurance that covers the loss of revenue and profit attributed to a change in consumer perception of an organization's brand because of a crisis is an element of reputation risk coverage, said Randy Nornes, executive VP with Aon Risk Solutions. “The reality is if you've damaged a brand and someone paid you for the financial loss, you still have a damaged brand and there's not enough insurance in the world to make you whole again because your business is basically damaged now,” Mr. Nornes said.

 

Many insurers offer reputation risk policies that include services from crisis management and public relations firms at a prenegotiated rate to assist the company or organization in the event of a crisis.
Proper crisis communication can mitigate the overall financial impact of an adverse event, said Simon Barker, a senior reputation risk and crisis