What is Advertising Injury?
Advertising injury occurs when a business causes harm to another party through its advertising activities. This can include defamation (libel or slander), violation of privacy, or the unauthorized use of someone else’s intellectual property, such as trademarks, slogans, or copyrighted material. Advertising injury can also arise from false advertising claims or misleading statements about a competitor.
In the context of business insurance, advertising injury is often covered under a commercial general liability (CGL) policy. These policies protect businesses from legal claims and lawsuits related to advertising injury, which can result in costly legal fees and damages.
For example, if a company runs an ad that unintentionally uses a competitor’s trademarked slogan, the competitor may sue for advertising injury. CGL insurance would help cover the defense costs and any settlements or judgments that arise from the case.
Advertising injury coverage is crucial for businesses that rely heavily on advertising and promotion, as it protects them from potential financial losses due to these types of claims.