Does business insurance cover libel and slander?
Depending on your policy, business insurance can support your company against claims of libel and slander. Coverage for defamation is typically included in a general liability or business owners policy (BOP) under personal and advertising injury. This protection helps with legal claims tied to your business operations, including communications and marketing activities.
In some cases, you may need additional coverage, like professional liability or directors and officers (D&O) insurance, to cover libel and slander lawsuits.
Protect your business from liability exposures with insurance from Progressive Commercial. Get a fast online quote or speak with an agent to find the right coverage for your needs.
What is defamation in insurance?
Defamation means making a false statement about someone else that damages their reputation. If your business or an employee causes harm because of something said or published, defamation insurance can help pay for legal fees and other costs.
Libel and slander are both forms of defamation, but they differ based on how the information is shared:
- Libel: Written defamation, like false claims posted in blogs, emails, online reviews, or social media.
- Slander: Spoken defamation, like false statements made during client meetings, phone calls, presentations, interviews, or in conversations at events.
Why is defamation insurance important?
Libel and slander claims can create serious legal and financial risks to businesses. Whether it's a public comment shared at an event or a claim made in an advertising campaign, harmful statements can lead to a lawsuit.
Facing legal action can strain your company and impact your bottom line. Defamation insurance helps cover expenses and gives you support during a claim.
What types of business insurance cover libel and slander?
Several types of business insurance can help protect your company from libel and slander claims. These coverages can help if someone says your words, marketing, or communications caused harm. Each type of policy offers different support overall, so it's important to understand how they work.
General liability
General liability insurance covers claims of libel and slander as part of personal and advertising injury coverage. It can help pay for legal defense, settlements, and judgments if someone says you damaged their reputation. It could apply to things you said, published, or shared in your business activities.
Business owners policy
A BOP includes the same liability coverages you'd find with general liability insurance, which means it can also protect your company from libel and slander claims. The key difference between these policies is that BOP also includes property protection, so it covers a wider range of risks outside third-party injury.
Defamation insurance in action
Defamation insurance examples
Public statement
A manager publicly accuses a competitor of fraud at a trade show.
Sales claims
A sales rep tells customers that a competitor's product is unsafe without having any proof.
Social media
An employee shares a false statement about a vendor in a social media post.
Other insurance that may cover libel and slander
Coverage for defamation can vary depending on who or what caused the claim. Review your policy documents or speak with an agent to confirm what's included. Depending on your business type and exposures, you may get coverage through the following types of insurance:
Directors and officers insurance
D&O insurance can cover defamation claims made against executives or board members if they make a false statement that harms another party. Coverage varies, so review your policy carefully.
Professional liability
Professional liability insurance, also called errors and omissions, can apply to work you produce for clients. For example, if you create an advertising campaign that includes false statements about your client's competitor, they could make a claim against you for reputational harm.
Cyber
Some cyber insurance policies may also include media liability coverage for businesses that create or distribute online content. These policies can also help cover costs associated with data breaches, cyber attacks, and legal claims related to online activities.
Who needs libel and slander insurance coverage?
Businesses that regularly publish information or operate in competitive markets may benefit from libel and slander protection. Common examples include:
Remember, libel and slander claims can arise from everyday business interactions like advertising, public statements, or employee communications. If your team communicates publicly on behalf of your business, this coverage can protect you from costly defamation claims.
Frequently asked questions about defamation insurance
What doesn't libel and slander insurance cover?
Most policies exclude intentional defamation. Libel and slander insurance only applies to unintentional acts, not purposeful statements made to damage someone's reputation.
Is personal and advertising injury the same as reputational harm coverage?
Yes. These terms are often used interchangeably. Personal and advertising injury is the formal name for this coverage on a general liability or BOP.
Does general liability cover copyright infringement?
Yes, but only if the infringement occurs in your advertising. If it's part of your product or service, you may need separate coverage.
What's the maximum payout for a defamation claim?
It depends on your policy's personal and advertising injury insurance limit, which is separate from bodily injury and property damage limits.
If I remove a harmful statement immediately, can I avoid a claim?
Possibly. Removing the statement may reduce future damages, but it doesn't prevent someone from suing. Notify your insurer immediately if you receive a demand letter or lawsuit.
Why choose Progressive Commercial for defamation insurance
Progressive Commercial can help you build a tailored small business insurance plan that includes liability protection and additional coverages like D&O, employment practices liability (EPLI), or professional liability to close potential gaps.
We've been serving small businesses like yours for over 50 years. Contact an in-house agent or start a quote online to get the right coverage for reputational risks.
