What is Personal and Advertising Injury Coverage?

What is Personal and Advertising Injury Coverage?

Personal and advertising injury insurance encompasses bodily harm resulting from a covered offense.

To illustrate, if a false arrest results in bodily injury, such injury could fall under the purview of personal and advertising injury coverage.

An image illustration of What is personal and advertising Injury coverage
What is personal and advertising Injury coverage
Source: (nextinsurance)

What is personal and advertising injury insurance?

Your CGL insurance policy comprises two key components within the personal and advertising coverage:

personal injury liability and advertising liability. Let’s break down what each of these entails:

  1. Personal Injury Liability: This aspect addresses liability arising from intentional wrongful acts, such as libel, slander, wrongful eviction, false arrest, and invasion of privacy.
  2. Advertising Liability: This facet addresses liability stemming from claims related to the misuse of advertising concepts, business practices, or copyright infringement.

When combined, these two coverage elements form a section that extends broader coverage to businesses compared to typical bodily injury and property damage claims.

What does insurance cover in terms of advertising injury situations?

Your general liability insurance or business owner’s policy provides protection against advertising injury liability, such as:

  1. Defamation of an individual or company through spoken words (slander) or written content or visuals (libel), involving false statements. Certain professions with unique exposure to slander or libel, like lawyers, media and advertising firms, and publishers, may have this risk covered by professional liability insurance.
  2. Violation of an individual’s right to privacy through oral or written statements that misuse their name or likeness, infringe on their privacy or solitude, or disclose private information, even if accurate.
  3. Unauthorized use of another company’s advertising themes or concepts for your own purposes, essentially appropriating their advertising content.
  4. Infringement of an individual’s or company’s copyright or slogans by using, distributing, or displaying copyrighted material without the owner’s consent.

Examples of Personal and Advertising Injury Claims:

  1. False Arrest: A retail store’s security wrongly detains someone they suspect of theft. When it turns out the person didn’t steal anything, the store gets sued for false arrest.
  2. Wrongful Eviction: A commercial landlord raises rents, angering a long-term tenant who damages the property during their move-out. The landlord locks them out early, leading to a lawsuit for wrongful eviction, which is covered.
  3. Copyright Dispute: A small coffee shop named “Gibraltar Coffee” gets sued by a big coffee corporation for using the term “Gibraltar.” Despite it being a common industry term, the coffee corporation claims ownership. Personal and advertising injury coverage helps with legal defense and potential damages.

Common Exclusions in Personal and Advertising Injury Insurance Coverage:

  1. Intentional Harm: Insurance won’t cover intentional actions like false arrest or copyright infringement done on purpose.
  2. False Info: Coverage doesn’t apply if you knowingly publish false material, even if it’s related to libel or slander.
  3. Past Publications: Anything published before your policy starts isn’t covered, so be careful when switching insurers.
  4. Criminal Acts: Insurance doesn’t cover claims resulting from criminal or illegal actions.
  5. Price Mistakes: If you accidentally advertise incorrect prices and can’t honor them, it’s not covered.
  6. Product Claims: If your product doesn’t meet the claims you made about it, the policy won’t cover those inaccuracies.
  7. Media or Internet Business: Media and advertising businesses usually need specialized coverage; this policy excludes them.
  8. Online Chat Rooms: Owning or managing online chat rooms or bulletin boards requires specialized coverage, not included in a standard policy.

Frequently Asked Questions:

  1. What is the scope of personal and advertising injury insurance coverage?
  2. How can I obtain personal and advertising insurance coverage?
  3. What does consequential bodily injury entail?
An image illustration of Personal and Advertisement Injury Coverage
Personal and Advertisement Injury Coverage
Source: (advisorsmith)

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