Loss of Reputation

A loss of reputation refers to damage to the public image of a company, brand, or individual—for example, due to a mistake, a social media storm, negative media reports, or a cyberattack. As a result, the trust of customers, partners, and the public can decline—with negative effects on orders, sales, or long-term growth.

Loss of reputation is often difficult to quantify, but it has enormous economic consequences. In the digital world in particular, critical content or missteps spread rapidly via social networks – and are difficult to control.

Typical causes of reputational damage:

• A data protection breach that has become public knowledge
• Poor reviews or false claims on platforms or social media
• Plagiarism, copyright or trademark infringements
• Unprofessional behavior or unfortunate communication
• Faulty products or services

Reputational damage and insurance coverage

Damage to your reputation is not only annoying, it can also threaten your livelihood—for example, if customers leave or new projects fail to materialize. This is exactly where exali's professional liability insurance comes in.

In serious cases, exali will cover:

• The examination of liability and defense against unjustified allegations (passive legal protection)
• Payment of damages if a third party has been harmed by an action
• The costs of professional reputation management measures (e.g., PR consulting or crisis communication) – via the additional data protection & cyber own damage coverage module

Practical example of a loss of reputation:

An agency client accidentally publishes a copyrighted graphic on social media. A warning letter follows – and a storm of criticism in the comments. There is no response, and the client loses customers and reach. With the right insurance, not only the legal costs but also PR measures to limit the damage can be covered.