What is Defamation Insurance?
Defamation includes the spreading of damaging information or false statements about an individual or business that creates reputational harm. Defamation insurance, otherwise known as libel and slander insurance coverage, can cover legal fees, potential damages, and settlement payments that may arise from defamation lawsuits.
Media liability and general liability policies typically provide coverage for claims alleging defamation (although general liability policies exclude such coverage for insureds engaged in media businesses and can be purchased separately).
Is Defamation Insurance Included In A Commercial General Liability Policy (CGL)?
CGL Insurance is a standard insurance policy issued to businesses & organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. The CGL Insurance policy was introduced in 1986 and is often also referred to as a “comprehensive” general liability policy.
It is the advertising and personal injury (PI) liability section of the commercial general liability policy that includes insurance for a defamation claim.
Should you require commercial general liability insurance, contact ALIGNED Insurance for a free quote!
What Else Is Covered By CGL Insurance?
In addition to providing coverage for defamation claims, the typical CGL insurance policy contains numerous types of coverage, including:
- Bodily Injury To Third Parties: This means bodily harm, sickness, or disease, including death, that results from the operations of your business. Ex. a customer slips in your store and breaks their hip.
- Property Damage To Third Parties: Damage caused to the property of others. Ex. a contractor accidentally damages the building next to the one he is working on.
- Products Liability: The liability for bodily injury (BI) or property damage (PD) incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured. Ex. the customer becomes sick after eating at a restaurant.
- Completed Operations: Work of the insured that has been completed as called for in a contract, work completed at a single job site under a contract involving multiple job sites, or work that has been put to its intended use. Ex. a plumber installs a new toilet and it begins to leak and damages the contents of the room below.
- Tenants Legal Liability: Tenant accepts responsibility for the damage they may cause to the building which they rent or lease from a landlord. Ex. an asset management company employee leaves a candle burning at their desk overnight which catches fire and burns down the entire office tower.
