Commercial Insurance Blog

We recently heard from a customer of ours who had endured a terrible, terrible event happen at their company. Naturally we cannot share any details, but suffice to say that it was the sort of event that newspaper reporters love to cover and can cause tremendous harm to a company's brand. That fact that management has a well communicated policy prohibiting what happened, and was entirely unaware of the activity until that time everyone learned about it, is immaterial. This stuff sells newspapers and today, internet eyeballs and a story like this can deeply tarnish a longstanding, well crafted brand. 

So a really bad event happens at your company...what's the first thing you do?

First understand the press, because they will want to know all the details. Remember that reporters have a job to do, and that includes seeking multiple sources to find and research and tell a story that sells. Your job is to help them do their job in a fashion that is not harmful to your company's brand. 

To ensure a consistent and controlled message, a single spokesperson should be named immediately to handle all inquiries from the press.  A corollary to this is that other people within the organization should be immediately, clearly, consistently, and repeatedly directed, that only the named spokesperson should talk to the press. Any good reporter will try to contact other people; expect this and do your best to limit leakage and disparate messaging by consistently and repeatedly reminding employees who talks to the press.

A reporter can ask your spokesperson any question, and the spokesperson can answer with any answer.  Here are the most important answers to questions about the company's being in the news:

1. We have had an incident involving… (be genuine, but non-specific when privacy or brand quality is a factor).
2. The incident is under investigation, and we are cooperating fully with the appropriate authorities.
3. We don't have all the facts and details, but will let you know when we know more.

If this sounds familiar from soundbites you've seen on the 6 o'clock news, it is because this is the gold standard response to show that you are a good community citizen, you are taking action, you are cordial to the press, ..without revealing any more details than necessary.

Never say "No Comment", and Never Lie.  The first says "guilty", and the second never ends well.

Whenever possible use one of the above statements for answers on follow-up questions that will come from reporters.  Use different words if needed, to say the same thing.  For example instead of "we don't have all the facts and details", you can say, "we just don't know enough about that yet".  Don't be blatant with stonewalling, but control the information flow.

As quickly as possible, and certainly after the first onslaught of reporters and cameras, hire a PR professional.  Let a professional guide the flow for you.  Some insurance carriers include "Image Restoration" coverage to pick up the expense of a professional public relations person.

Soon enough, another story will grab the attention of reporters, and you can get back to rebuilding your business reputation through the traditional means you've always used.