In today’s world of online reviews and social media callouts, a company’s public image is more fragile than ever. One wrong move can unleash a firestorm of backlash.
That’s where advertising injury coverage comes in. This important yet often misunderstood insurance protection can be a lifeline for small businesses that find themselves facing defamation lawsuits or other legal claims related to their marketing activities.
In this blog post, we’ll explain exactly what advertising injury coverage is, what it protects, and why it’s vital for small business owners today.
What is Advertising Injury Coverage?
Advertising injury coverage, also known as personal and advertising injury coverage, is a component of commercial liability insurance that can help cover fines or expenses incurred as a result of a defamation case arising from your business’s product or service advertisements.
Your business may become liable for fines if you engage in false advertising or make false claims about other businesses, so having an advertising injury coverage policy can help prevent costly lawsuits.
What is Typically Covered with an Advertising Injury Coverage Policy?
Even if you or your employee had no malicious intent, you may still be responsible for any costs or fees related to the harm caused to the accused party. An advertising injury coverage policy typically covers liability costs for the following violations:
- Slander: Slander occurs when you go around and speak ill of a company for your own gain, with the intent to damage their reputation, and may lead to legal repercussions.
- Libel: Libel is similar to slander, but it involves written or visual communication about a company rather than spoken words. Libel cases are often easier to prosecute as the evidence of any wrongdoing is easier to collect.
- Copyright infringement: This occurs when you unlawfully use the intellectual property of another company and label it as your own. You may have to pay for fines and damages, as well as the loss of potential customers for that company.
- False Advertisement: If you knowingly or unknowingly make false claims in your company’s advertisements or about any of your products, you could be susceptible to being sued for false advertising. Insurance coverage for this type of claim may be more challenging to get compared to the other violations discussed above.
Why Your Business Should Get an Advertising Injury Coverage Insurance Policy
The reason to get an advertising injury coverage insurance policy is to help cover the costs associated with unintentional acts of defamation. The cost of taking out such a policy may seem insignificant at first glance.
However, if you accidentally defame another company, this policy can potentially save you a significant amount of money. Typically, this coverage is included in commercial liability coverage, but it’s advisable to check with your insurance agency.
By investing in one of these insurance policies, you can have peace of mind, knowing that your company’s finances are protected from potential lawsuits or claims against your business’s reputation. Having this type of protection can help keep your company afloat in case something goes awry.
How TSL Insurance Group Can Help Your Louisiana Business
At TSL Insurance Group, our team of insurance advisors can easily review your current insurance policies and recommend any suitable changes to your policies, particularly in relation to advertising injury coverage options in the Louisiana region.
Contact us today for a free consultation by filling out the form below! With five conveniently located offices in Lafayette, Franklin, Abbeville, Baton Rouge, and Lutcher, we can assist you in finding the perfect insurance policies for your advertising injury coverage needs.
Here at TSL Insurance Group, we serve a wide range of companies in Louisiana, including those in construction, banking and financial services, healthcare, real estate, and more. Please feel free to contact us for your complimentary consultation.