Personal and advertising injury is a lesser-known coverage available under a general liability insurance policy. Whereas a part of general liability deals with physical damage or injury, personal and advertising injury covers the emotional or reputational injuries.
This coverage provides assistance for legal fees such as defense costs, settlement expenses and court fees in case of specific lawsuits. Types of lawsuits covered under personal and advertising injury coverage include accusations of:
- False arrest, detention or imprisonment
- Malicious prosecution
- Wrongful eviction
- Violation of privacy
- Copyright infringement
- Using someone else’s advertising idea or concept
Libel and Slander
Libel and slander work much the same way, with the key difference being that libel is a written statement and slander is an orally made statement. Both libel and slander refer to defamatory statements someone may make and be sued for. This includes businesses.
For example, say a newspaper publisher sends out an article claiming that a rival publisher is spreading false information and using immoral ways to get information. The rivaling publisher may then sue for libel. A business executive that makes a speech spreading ill will against a previous sponsor in an attempt to harm their reputation may be sued for slander.
False Arrest, Detention or Imprisonment
These three personal injuries have to deal with a person being physically or forcibly detained against their will. Say two business partners get in an argument. One tries to leave, but the other locks the door until the argument is over. The withheld business partner may sue the other for false arrest.
False imprisonment refers to physically confining someone with force or threat without legal authority. For example, say a manager sees a customer lingering as the store is closing up and believes they are stealing. The manager locks them inside and threatens them to tell the truth, even physically grabbing their arm or backpack. That customer may later sue for false imprisonment.
Some of the incidents covered under personal and advertising injury only apply in certain situations. Malicious prosecution may occur if a person can prove they have been the victim of a malicious lawsuit or criminal action. For example, say an employer believes an employee is stealing from them and demands they are arrested and charged. It is later discovered that the thief was a separate employee, and the charges against the original employee are dropped. The original employee can now sue for malicious prosecution.
Also Read: Do I Need Business Insurance if I’m Self Employed?
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