Insurance Personal and Advertising Injury Claims and Coverage

Insurance policies often include personal and advertising injury claims and coverage, which can be a crucial aspect of protecting your business. Personal injury claims can arise from libel, slander, or false light, while advertising injury claims can stem from copyright infringement or misappropriation of advertising ideas.

In the US, the Communications Decency Act of 1996 provides immunity for online service providers from liability for user-generated content. This means that websites and social media platforms can't be held responsible for the content posted by their users.

Libel and slander are two common types of personal injury claims that can arise from false statements made about an individual or business. These claims can be costly to defend and may result in significant financial damages.

A single instance of libel or slander can cost a business upwards of $100,000 to defend, and even more if the plaintiff is awarded damages.

Advertising injury can be a serious issue for businesses. If you use someone else's advertising idea, such as distinctive balloons, in your advertisement without permission, you may be sued.

You could also be liable for trade dress infringement if you copy the appearance of another company's product, like packaging a cookie in a container that looks just like theirs.

Using another company's slogan in your advertising without permission can also lead to a lawsuit.

Using Another's Idea in Advertising can be a tricky area. Bill's Bakery developed an ad campaign using distinctive balloons, and someone else published an ad with the same balloons, leading to a lawsuit.

You can't just copy another business's advertising idea without permission. If you publish an ad with balloons that are the same shape and color as Bill's, you may be sued for using its idea without permission.

Trade dress infringement is also a concern. Bill's Bakery sells triangle-shaped cookies in a purple triangular container with white lettering, and if you start selling similar cookies in a similar container without permission, you may be sued for trade dress infringement.

Using another company's slogan in your advertising without permission is also a no-go. If you use a slogan that belongs to someone else, you may be subject to a lawsuit.

Your business needs to be original and respectful of others' ideas. If you're unsure about using someone else's advertising idea, it's best to come up with something unique.

GEICO was forced to arbitrate claims against three New Jersey chiropractors.

The Third Circuit held that GEICO must arbitrate claims against the chiropractors.

This was a precedent-setting case, setting a new standard for arbitration in similar cases.

GEICO was suing the chiropractors for fraud and racketeering, but the court ruled that arbitration was required.

Arbitration can be a complex and time-consuming process, often favoring one party over the other.

In this case, the court's decision required GEICO to resolve the dispute through arbitration rather than in a court of law.

Personal and advertising injury coverage is a crucial part of a general liability policy, and it's essential to understand what it covers.

This type of coverage protects policyholders from claims of specific offenses, such as slander, libel, and disparagement of goods or services.

The list of offenses that can trigger personal and advertising injury coverage varies from policy to policy, but it typically includes allegations of slander or libel, as well as disparagement of a person's or organization's goods, products, or services.

Personal and advertising injury coverage can pay for legal fees, court expenses, and any settlements or judgments levied against you up to the limits listed on your policy's declarations page.

With a base FLIP policy, you automatically get personal and advertising injury coverage starting from $25.92 a month.

Coverage B is there in the event your business is obligated to pay damages for libel, slander, and other personal and advertising injuries.

Personal and advertising injury is split into two categories: personal injury liability and advertising injury liability.

Here's a breakdown of what personal and advertising injury cover:

If an act such as false arrest or slander leads to bodily injury, the injury should be covered as personal and advertising injury.

Claims of libel, slander, or disparagement can be a gray area, but courts often focus on whether the underlying complaint alleges injury to the claimant's reputation.

If the allegations do involve reputational harm, courts typically find that the insurance company has a duty to defend the policyholder.

A furniture retailer was sued for allegedly infringing on a supplier's trade dress, and the court held that since the claims alleged damage to the claimant's reputation, they constituted an allegation of disparagement for the purposes of triggering coverage.

Your general liability insurance carrier won't provide coverage if the harm was intentional on your part, such as purposely slandering a competitor or printing information that you know to be false.

Courts often look at the intent behind the actions to determine whether coverage applies.

Malicious and Criminal Acts can be a major red flag for insurance companies. If you're sued for malicious prosecution, you'll need to prove that the lawsuit or criminal action against you was without probable cause.

To avoid this, it's essential to ensure you're not making false accusations. For instance, if you suspect your bookkeeper is embezzling money, but the evidence points to your business partner, you could be held liable for malicious prosecution.

Intentional acts of harm, such as slander or printing false information, will also void your insurance coverage. This means you'll need to be extremely careful with your words and actions, especially when it comes to competitors or business partners.

Malicious prosecution is a serious issue that can have severe consequences for individuals and businesses. It's defined as civil or criminal action without probable cause.

To successfully sue for malicious prosecution, a person must prove that they were the subject of a malicious lawsuit or criminal action, which was resolved in their favor. This can be a difficult and time-consuming process.

In a recent case, a business owner suspected their bookkeeper of embezzling funds and had them arrested and charged with theft. However, it was later discovered that the true culprit was the business owner's partner. The charges against the bookkeeper were dropped for lack of evidence, and they sued the business owner for malicious prosecution.

The business owner's actions demonstrate a lack of probable cause, which is a key element in malicious prosecution claims. This highlights the importance of exercising caution and gathering evidence before taking action against someone.

A person who has been the subject of malicious prosecution may be able to recover damages and other costs associated with the lawsuit or criminal action.

If the insured's offense includes criminal behavior, the expenses will likely not be covered under Coverage B. This is a crucial consideration for individuals who have been involved in malicious acts.

Insurance policies often have specific exclusions for criminal behavior, which can leave policyholders with significant financial burdens. It's essential to review your policy carefully to understand what is and isn't covered.

In some cases, the type of offense can affect the level of coverage. For example, if the insured's offense is considered a misdemeanor, coverage might be more limited than if the offense was a felony.