ABA Insurance Services, the American Bankers Association-endorsed program providing liability insurance for community banks, is now offering social networking coverage as part of its internet liability policies.

Online social networking forums such as Facebook, Twitter and LinkedIn are ever-more prevalent in the banking scene and present a problem in most internet liability policies, which were created in the late 1990s when email was the primary electronic communication tool, according to a statement. To address this gap in insurance coverage, ABA Insurance Services is now including the Social Networking Endorsement to the program’s Internet Banking Liability policy.

The new coverage addresses claims made by or on behalf of customers or regulatory agencies. It also includes coverage for regulatory correction expenses.

"We are pleased to provide this new coverage enhancement to address the potential losses that banks may face due to the increased usage of social media," said John N. Wells, president and CEO of ABA Insurance Services. "It is an example of how we identify developing exposures and take action to best serve the insurance needs of community banks."