PERSONAL AND ADVERTISING INJURY LIABILITY

Under this section of the policy, the company will pay all sums that the insured becomes legally obligated to pay because of personal and advertising injury, as defined. First, there must be injury and it can include consequential bodily injury. Next, that injury must arise from one of the following offenses:

• False arrest, detention or imprisonment—when an individual’s movements are restricted by another individual, false arrest, detention or imprisonment may be claimed
• Malicious prosecution—this includes actions of private citizens against other private citizens
• Wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies—when the offenses are committed by or on behalf of its owner, landlord, or lessor
• Slander or libel of a person or organization
• Violation of a person’s right of privacy through written or oral publications
• Any use of another’s advertising idea in the insured’s advertisement
• An infringement upon another’s copyright, trade, dress, or slogan in the insured’s advertisement

PERSONAL AND ADVERTISING INJURY LIABILITY EXCLUSIONS

Pollution

It was never the intent of the personal injury or advertising injury coverage to provide for any pollution damages or cleanup costs. Therefore, wording has been added to the effect that no coverage exists for any pollution exposure that may arise out of personal injury and advertising injury wording.

False Material

If the insured knows that information is false and still allows it to be published, there is no coverage for any resulting personal and advertising injury.

Foreknowledge

There is no coverage if the insured had knowledge that the act would not only violate the rights of another but would cause personal and advertising injury.

Criminal Act

If an insured commits a criminal act or directs another to commit a criminal act, there is no coverage for any personal and advertising injury that results.

Assumed Liability

Liability assumed under a contract is not covered unless the insured would have been liable for the action in the absence of the particular contract or agreement.

Prior Publication

If the material that is causing the personal and advertising injury was published prior to the policy period, there is no coverage.

Breach of Contract

The only breach of contract coverage provided under the personal and advertising injury coverage is the misappropriation of advertising ideas under an implied contract.

Failure of Goods to Perform

Does not cover the failure of goods, products or services to perform with advertised quality or performance.

Incorrect Price

The policy does not cover an error in description of the price of goods, products or services.

Advertising Business

There is no coverage for injury arising out of an offense committed by an insured that is in the business of advertising, broadcasting, publishing, or telecasting.

Electronic Chat Rooms/Bulletin Boards

There is no coverage for injury that results from any chat room or bulletin boards controlled by the insured.

Unauthorized Use of Another’s Name

When an insured uses another’s name to direct traffic to its website and that use is not authorized, there is no coverage if an offense is alleged.

Recording and Distribution of Material or Information in Violation of Law

A number of federal and state laws and regulations place limitations on how businesses can use the telephone and internet in communicating with potential customers. There is no personal and advertising injury coverage available to an insured for actions that violate these or similar statutes.