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Small businesses should choose mobile marketing firms with insurance coverage


Though many small businesses recognize the importance of business insurance, some do not apply the same caution with affiliates they do business with. However, when it comes to mobile marketing, small business should use insured firms, according to the Miami Herald.

Matt McKenna, president of a Miami-based marketing firm told the newspaper that finding a firm that complies with the guidelines set by the Mobile Marketing Association is important, but making sure they have insurance may be equally important, "because as a small business you don’t want to have any liability arising out of your mobile marketing campaign due to a mistake made by the provider you hired."

"The E&O insurance carried by a firm offers you protection in case they make a mistake such as accidentally sending a text alert to someone without their opt-in permission, which is against MMA guidelines," McKenna told the source.

As mobile media marketing becomes more popular, risk increases as well, as seen by the rising number of cyber criminals now targeting smartphones and other mobile devices. According to Insurance Journal, the risk of security breaches on mobile devices is one of the top security risk concerns of 2011.

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