The parameters of coverage for harms that arise from specific offenses, not bodily harm, are outlined within standard insurance policies. This coverage encompasses actions such as libel, slander, violation of privacy rights, copyright infringement in advertising, and wrongful eviction. An example would be a business that uses a slogan in its advertising campaign that is substantially similar to a competitor’s registered trademark, potentially leading to a claim of copyright infringement.
The significance of understanding this particular aspect of an insurance policy resides in its capacity to protect businesses from potentially devastating financial losses resulting from litigation. Claims related to defamation or intellectual property violations can be costly to defend, even if the business is ultimately found not liable. Historically, such protections evolved to address the increasing complexities of advertising law and the expanding definitions of what constitutes a violation of an individual’s rights.
