Holmes Report 15 Oct 2011 // 11:00PM GMT
NEW YORK—Chartis, the insurance division that is being spun out of AIG, has become the latest insurance company to offer coverage designed to help policyholders cope with reputational threats.
Developed by Chartis’ executive liability division, ReputationGuard is designed to provide access to reputation and crisis communications professionals as well as coverage for costs associated with avoiding or minimizing the potential impact of negative publicity.
The product gives policyholders access to crisis experts from Burson-Marsteller and Porter Novelli, including the latter firm’s “real-time reputation” specialty.
“In today’s world, one person’s negative opinion can quickly become adverse publicity on a global scale,” says Tracie Grella, president of Chartis’ professional liability unit. “Public perception of the response to an event can have a lasting impact on an organization’s reputation. ReputationGuard is a unique solution to this exposure.”
A recent EisnerAmper Board of Directors survey found that 69 percent of public and private board members now rank reputation risk as their primary concern, while Burson’s 2010 Crisis Preparedness Study found that 79 percent of business decision makers believe they are only 12 months from a potential crisis.