Coverage B: Personal & Advertising Injury Liability
What Coverage B Protects Against
Coverage B covers specific acts that result in a non-physical injury to a third party due to offenses defined as personal and advertising injuries.
Insuring Agreement
Similar to bodily injury and property damage insuring agreement, but third party injuries must be as a result of personal and advertising injury.
Requirements:
- The offense must be committed within the coverage territory
- The offense must occur during the policy period described in the declarations
Personal Injury (PI)
Key Concept
Personal Injury covers injuries caused to third parties that result from mental anguish or specific wrongful acts - NOT physical bodily injury.
Covered Personal Injury Offenses
False Arrest or Imprisonment
Wrongfully detaining or restraining someone.
Example: Customer gets accused of shoplifting but later it's found they weren't. This is unlawful detention.
Wrongful Eviction or Detention
Illegally removing someone from property.
Example: Landlord illegally locks tenant out without proper notice.
Invasion of Privacy
Unauthorized intrusion into personal matters.
Example: Landlord enters tenant's home without permission or proper notice in the lease.
Malicious Prosecution
Bringing false criminal charges against someone.
Example: Filing baseless criminal charges against a competitor to harm their reputation.
Defamation of Character
Making false statements that damage reputation.
Includes: Slander (oral) and Libel (written)
Slander or Libel
False statements harming reputation.
Slander: Oral publication | Libel: Written publication
Advertising Injury (AI)
What is Advertising Injury?
Advertising Injury covers injuries that occur if, in the course of advertising, the insured inadvertently commits certain offenses against another party.
Covered Advertising Injury Offenses
Libel, Slander, or Defamation
Making false statements in advertising that harm another's reputation.
Privacy Violations
Oral or written publication that violates or invades the privacy of another through advertising.
Use of Another's Advertising Idea
Misappropriating someone else's advertising concepts or campaigns.
Copyright, Trade Secret, or Slogan Infringement
Using protected material in an insured advertisement without authorization.
Coverage C: Medical Payments
Good Will Coverage
Coverage C is considered "good will" coverage because payment will be made without regard to the fault or negligence of the insured. It helps maintain customer relationships.
What Coverage C Pays For
Provides necessary expenses for injuries to third parties:
Critical Time Requirement
Medical expenses must be incurred and reported within 1 year (12 months) of the date of the accident to be covered.
Coverage Requirements
Bodily injury must meet ALL of the following:
Be due to an accident
Occur on premises owned or rented by the insured, OR
Be due to the operations of the insured
Take place during the policy period
Occur within the coverage territory
Summary: Coverage A, B, and C
| Coverage | Protects Against | Key Points |
|---|---|---|
|
A
Bodily Injury (BI) & Property Damage (PD) |
BI: Injury, sickness, disease, death to third parties PD: Damage to or loss of use of others' property |
Physical injuries from business activities |
|
B
Personal Injury (PI) & Advertising Injury (AI) |
PI: Mental anguish, false arrest, wrongful eviction, malicious prosecution, defamation, slander/libel, invasion of privacy AI: Libel, slander, defamation, privacy violation, using another's advertising idea |
Non-physical injuries from specific offenses |
|
C
Medical Payments |
Medical, surgical, ambulance, hospital, nursing, funeral expenses for third parties |
Good will coverage - paid WITHOUT regard to fault Must report within 12 months |
Quick Memory Aid
A
Physical Harm
Body + Property
B
Mental Harm
Reputation + Feelings
C
Medical Bills
No-Fault Good Will
Exam Trap Alerts
Coverage C - 12 months: Medical expenses must be incurred AND reported within 1 year of the accident. This is different from other time limits in the policy.
Coverage C is "no-fault": Unlike Coverage A and B, Coverage C pays regardless of whether the insured was negligent.
Personal vs Advertising Injury: Both are in Coverage B but have different covered offenses. Personal = detention/privacy. Advertising = ads/marketing.
Slander vs Libel: Slander = oral (spoken). Libel = written. Both are covered under PI and AI.