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Definition of Personal and Advertising Injury in Business Insurance

Commercial insurance terms and definitions. Learn more about business insurance terminology and get the right coverage for your business.

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Personal and Advertising Injury

Insurance policies cover many things for individuals and companies. It protects property after its damage and humans after they’re injured. It can shield professionals when a plaintiff declares their advice was detrimental.

For those who feel their rights were infringed upon by another party, there’s insurance that helps cover costs related to court fees and reimbursement. This is called personal and advertising injury insurance.

How It Relates to Slander and Libel

Personal and advertising injury is another term for the infringement on the rights of an individual or a business. However, it is related to their personal or intellectual rights and is normally in the form of slander or libel. In situations where there seems to be a digression on a company’s product, personal and advertising injury is known as copyright infringement.

Breakdown

The personal injury component refers to:

  • Wrongful eviction

  • False arrest

  • Unprovoked detention or imprisonment

  • Malicious prosecution

The advertising injury component refers to:

  • Libel or slander

  • Infringement on a copyright or intellectual property

Examples

When it comes to personal injury, an individual or company can be sued if they evict a person without due cause. In another situation, a police department would be considered at fault if an officer arrested and jailed someone without any charges.

Advertising injury is based mostly in the business world, and it can affect large corporations and sole proprietors. For instance, an author can sue someone who uses portions of their book in another publication without permission. A company like Coca-Cola can sue a competitor that uses a product name that is almost identical to its own.

Coverage

Personal and advertising insurance is available as a separate policy and as part of a more comprehensive contract. Usually, personal and general liability insurance programs cover the expenses related to a claim. These include court and attorney fees and settlement costs.

On top of these retributions, the court might order those found as tortfeasors to perform additional tasks. For instance, a tabloid might have to print a retraction related to a previously written article. If the court rules against the defendant of a copyright infringement case, they will have to make changes to their product or face further fines.

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