Only a few insurance claims relating to defamation via social media have been made, but this will change given Australians’ rapid take-up of platforms such as Twitter, last week’s Claims Convention in Sydney heard.

HWL Ebsworth partners Richard Smith and Peter Campbell told delegates insurers have cover available, but the industry may not appreciate the likely extent of exposure to liability.

Brokers should consider whether SME clients need the protection, Mr Smith later told insuranceNEWS.com.au.

Claims managers have reported few claims, although a niche insurer is seeing defamation actions against professionals who have used Twitter and Facebook to make derogatory remarks about competitors.

“Insurers know it is going to happen, but it has not happened yet to any significant extent,” Mr Smith said.

There is little evidence of personal claims, possibly because personal insurance does not provide cover and people decide it is not worth suing.

Mr Smith says insurers must be aware of how to respond to claims.

A matter that could be ended with an apology or retraction if dealt with quickly can escalate to a costly settlement if the insured ignores letters of demand or takes too long to pass them to their insurer, leading to delays in the claims department.

The convention was hosted by the Australasian Institute of Chartered Loss Adjusters and the Australian and New Zealand Institute of Insurance and Finance.