What is Personal and Advertising Injury in a CGL Insurance Policy?
A Commercial General Liability Insurance Policy (also known as CGL Policy) is one of the most important insurance policies for any business. A CGL Policy covers the Bodily Injury and Property Damage suffered by third parties. The Bodily Injury and Property Damage Section of the CGL Policy covers Premises and Products Liability Exposure. However, there is much more to a CGL Policy Coverage than only Bodily Injury and Property Damage Cover.
What is Personal Injury Liability in a CGL Policy?
The definition of Personal Injury in a Commercial General Liability Insurance Policy Wording is:
-> bodily injury, death, sickness, disease, illness, disability, shock, fright, mental anguish and mental injury, including loss of consortium or services resulting therefrom;The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor;
-> The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor;
-> assault and battery which was not committed by You or at your direction, unless committed for the reasonably proportionate purpose of preventing or eliminating danger to persons or property.
-> false arrest, false imprisonment, wrongful detention, malicious prosecution and humiliation;
-> libel, or slander unless arising out of Advertising Injury
What is Advertising Injury Liability in a CGL Policy?
The definition of Advertising Injury in a CGL Insurance Policy Wording is:
-> Oral or written publication of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services; or
-> unfair competition, or idea misappropriation contrary to an implied contract; or
-> The use of another’s advertising idea in Insured’s advertisement; or
-> any infringement of copyright or passing off of title, trade dress or slogan in the Insured’s Advertisement; or
-> invasion or breach of privacy,
Understanding Personal Injury and Advertising Injury Liability under a Commercial General Liability Insurance Policy
Coverage B: Personal and Advertising Injury Section of CGL Insurance Policy is separate from Coverage A: Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy. The CGL Policy has a separate limit or Personal and Advertising Injury Liability. However, any claim paid under Coverage B: Personal and Advertising Injury Liability will also reduce the General Aggregate Limit under the Commercial General Liability Insurance Policy.
Similar to Coverage A: Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy, the Personal and Advertising Injury Liability under the CGL Policy will also pay for Legal Expenses and Compensatory Damages but for claims arising out of Personal and Advertising Injury.
Additionally, for Coverage B: Personal and Advertising Injury to trigger, it is necessary that the offense committed by the Insured arises out of the Business Activities of the Insured. Additionally, the onus of proving that the offense falls within the definition of Personal and Advertising Injury lies on the Insured who is seeking coverage under the CGL Policy.