Lloyd's insurer Kiln has launched a new insurance product to help restore business’ reputations after a crisis.

The reputational harm product, which was developed by Kiln’s enterprise risks team, provides financial protection for companies to help them restore their brands and revenue streams when they become the subject of negative media coverage following an insurable ‘event’.

The launch follows research released today from ComRes commissioned by Kiln, which reveals that more than half (52%) of consumers have changed their minds about buying from a company following negative media coverage.

The poll also revealed that just under a third of people (29%) have used social media to broadcast their complaints about a company to their wider friends and contact networks, while (37%) of people had decided not to buy from a particular company following comments from a company chief executive, director or celebrity ambassador.

Paul Culham, an active underwriter at Kiln, who leads the enterprise risks division, said: “Today’s research shows that negative media coverage in print, via broadcast or on social media sites can have a significant, detrimental impact on a company’s reputation and revenue stream, which businesses cannot afford to ignore.

“Our bespoke product, which can be adapted to address each business’ risk exposures, will give companies peace of mind that they have the financial security to restore confidence in their brands and help protect their revenues.”

Kiln said its product will cover the cost of hiring crisis PR and legal experts following negative media coverage.

The insurance will also cover the revenue loss that arises as a direct result of an insurable ‘event’ - including but not limited to: a product recall; a board or senior management members’ defection or behaviour; a health, safety and environment failure; aregulatory investigation or intervention; a business continuity failure or a data breach – which triggers the reputational harm policy.

The product will cover sectors including manufacturing, food and drink, pharmaceutical companies and retail.

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