Insurance terminology explained in simple terms
If the repute and good standing of an injured party, self-employed person or company, i.e. their reputation, is harmed by a damage event, we call this a reputational damage.
The reputation of a person, company or brand is an important factor when it comes to long-lasting success. While it can often take years to build up a good reputation, negative headlines on the internet and social media can spread quickly and uncontrollably. Re-establishing this reputation and making up for the loss of trust once the storm has passed costs a lot of time and money in marketing and PR work. This expenditure and the resulting costs (from an actuarial point of view financial losses) are referred to as reputational damages.
If a policyholder’s reputation is affected, this reputational damage constitutes a first-party claim.
Term: Reputational Damage
If you can’t find a term, please don’t hesitate to contact us. We will answer your question and add it to the glossary.
You can find more tips and information about your business, insurance and real claims in our News & Stories.