AAIS FARMOWNERS PROGRAM: GL 0904–PERSONAL AND ADVERTISING INJURY LIABILITY COVERAGE

(October 2023)

INTRODUCTION

This is an optional endorsement. It is used to add Coverage P, Personal and Advertising Injury Liability Coverages to policies that include Farm Premises and Operations Commercial Liability Coverage. The limit selected for this coverage must be entered in the space provided on the endorsement schedule.

Note: This endorsement applies to only GL-610, Commercial Liability Coverage (Farm Premises and Operations).

DEFINITIONS

This endorsement has its own definitions of advertising injury and personal injury.

Advertising injury

This means injury that arises from any of the following offenses. It does not apply to bodily injury, property damage, or personal injury.

Materials published in written or oral form that are slanderous or libelous, denigrate another person or entity’s products or services or intrudes on another party’s right to privacy
Unauthorized use of another party’s distinct way of doing business
Using methods to identify its business that is too much like another party’s methods that infringes on the other party’s trade name, trademark, copyright, slogan, or title

Personal injury

This means injury that arises from any of the following offenses. It does not apply to bodily injury, property damage, or advertising injury.

Materials published in written or oral form that are slanderous or libelous, denigrate another person or entity’s products or services, or intrude on another party’s right to privacy
Improperly detaining or confining another party, including false arrest
Prosecutes another party vindictively or maliciously
As a lessor, landlord, or owner of a room, dwelling, or premises (or a party that acts on their behalf) breaking into, evicting from, or invading the rights of a party to occupy the room, dwelling, or premises privately

Note: This endorsement uses the term “offenses” instead of “occurrence” or “accident.” Offense refers to violating laws and is a term that closely aligns with the nature of coverage this endorsement provides.

PRINCIPAL COVERAGE

This endorsement obligates the insurance company to pay all sums an insured is legally required to pay as damages because of personal injury or advertising injury offenses that this endorsement insures. The offense must take place during the policy period and in the coverage territory. Coverage is for both of the following:

Personal injury that arises from an offense the named insured commits in the normal course of its business. However, there is no coverage for any advertising, publishing, broadcasting, or telecasting that the named insured does or others do on its behalf.
Advertising injury that arises from an offense the named insured commits in conjunction with it advertising its goods, products, and services

Example: Porkshell Acres and FreshNGud Farms are neighbors….very competitive neighbors selling prepackaged meals at their respective locations. They both use billboards and are well-known in the area. Fresh sues Porkshell because Porkshell put up a billboard with the statement, “Try our packaged meals…..they actually ARE FRESH…AND GOOD!!” A court and an appeals court later agreed with FreshNGud’s complaint that Porkshell denigrated its products. Porkshell had to remove the ads, and FreshNGud was awarded $20,000 plus expenses.

DEFENSE COVERAGE

This endorsement replaces the definition of “suit” in any coverage form or policy that it modifies. It defines “suit” to include all forms of alternative dispute resolution, such as arbitration or mediation, the named insured must participate in, submit to, or submit to with the insurance company’s consent.

Example: Delorothea owns “D’s Diner.” Amalgramated Prodoocers sues her because it owns a restaurant franchise called “Dee’s Diner.” Amalgramated and Delorothea settle their dispute via mediation. Delorothea’s insurance company gave her permission to participate in the mediation, and this endorsement treats the situation as a “suit.”

EXCLUSIONS

This endorsement adds several exclusions that specifically apply to personal injury and advertising injury. Coverage does not apply to any of the following:

· Personal injury or advertising injury when the insured assumes liability under a contract or agreement, except for liability the insured has without a contract or agreement

· Personal injury or advertising injury due to rendering or failing to render a professional service

· Personal injury or advertising injury that results from any activities that involve aircraft, motorized vehicles, or watercraft

· Personal injury or advertising injury when any insured is found to be liable for any reason related to alcoholic beverages or contributing to a person’s intoxication. However, this exclusion applies only if the named insured is in the alcoholic beverage business.

· Personal injury or advertising injury that results from any act of war

· Personal injury due to an insured’s employee’s personal injury that occurs in the course of that person’s employment or to consequential injury to certain relatives. This is in cases where the insured is liable as either an employer or in any other capacity or where it is obligated to partially or completely reimburse a third-party for damages that arise from such personal injuries. However, this exclusion does not apply to liability the insured assumes under a covered contract.

· Personal injury if the insured provides or is required to provide benefits under any unemployment compensation, disability benefits, workers compensation, occupational disease, or similar law or act

· Personal injury that arises from refusing to employ a person or terminating a person’s employment. Similar employment-related policies, practices, acts or omissions such as demotion, evaluation, coercion, disciplining, defaming, harassment, discrimination, humiliation, or sexual misconduct are also excluded. It happens in cases where the insured is liable as either an employer or in any other capacity or where it is obligated to partially or wholly reimburse a third-party for damages that arise from such personal injuries.

· Personal injury or advertising injury that arises from an insured willfully violating an ordinance, regulation, or statute or from others doing so with the insured’s consent

· Personal injury or advertising injury that arises from an insured (or others at an insured’s direction) publishing material in writing or orally that it knew was false, or that took place before this policy’s effective date

· Advertising injury that arises from a contract being breached, except for misappropriating ideas under implied contracts

· Advertising injury that arises from products, goods, or services failing to meet the performance or quality standard advertised

· Advertising injury that arises from offenses that an insured in the broadcasting, telecasting, publishing, or advertising business commits

· Advertising injury that arises from incorrectly describing the price(s) of an insured’s products, goods, or services

· Personal injury or advertising injury that arises from or involves pollutants in any form or way, including any liability to remediate or monitor their effects

HOW MUCH WE PAY

This General Aggregate Limit replaces the coverage form’s General Aggregate Limit with respect to the coverage this endorsement provides. The general Aggregate Limit is the most the insurance company pays for the sum of the following:

All damages under Coverage L (Liability) except damages due to bodily injury or property damage under Coverage N (Products and Completed Work)
All medical expenses that Coverage M (Medical Payments to Others) insures
All damages that Coverage O (Fire Legal Liability) insures
All damages that Coverage P (Personal Injury Liability and Advertising Injury Liability) insures

The limit for Coverage P is the most the insurance company pays to an individual or other party due to all personal injury and advertising injury that person or entity sustains. However, this limit is subject to the general Aggregate Limit.