Explained: Personal and Advertising Injury Liability in a CGL Insurance Policy

What is Personal and Advertising Injury in a CGL Insurance Policy?

A Commercial General Liability Insurance Policy (also known as CGL Policy) is one of the most important insurance policies for any business. A CGL Policy covers the Bodily Injury and Property Damage suffered by third parties.

The Bodily Injury and Property Damage Section of the CGL Policy covers Premises and Products Liability Exposure. However, there is much more to a CGL Policy Coverage than only Bodily Injury and Property Damage Cover.

</blockquote cite=”http://www.worldwildlife.org/who/index.html”>A CGL Policy also provides cover for something known as Personal and Advertising Liability Coverage. This article will explain in detail the Personal and Advertising Liability Coverage in a CGL Insurance Policy.

What is Personal Injury Liability in a CGL Policy?

The definition of Personal Injury in a Commercial General Liability Insurance Policy Wording is:

• bodily injury, death, sickness, disease, illness, disability, shock, fright, mental anguish and mental injury, including loss of consortium or services resulting therefrom;
• false arrest, false imprisonment, wrongful detention, malicious prosecution and humiliation;
• libel, or slander unless arising out of Advertising Injury
• The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor;
• assault and battery which was not committed by You or at your direction, unless committed for the reasonably proportionate purpose of preventing or eliminating danger to persons or property.

What is Advertising Injury Liability in a CGL Policy?

The definition of Advertising Injury in a CGL Insurance Policy Wording is:

• Oral or written publication of material that slanders or libels a person or organization or disparages a person’s or organization’s goods, products or services; or
• any infringement of copyright or passing off of title, trade dress or slogan in the Insured’s Advertisement; or
• unfair competition, or idea misappropriation contrary to an implied contract; or
• The use of another’s advertising idea in Insured’s advertisement; or
• invasion or breach of privacy,

arising from any advertisement, publicity article, broadcast or telecast provided it is caused by or arises out of Your advertising activities.

Understanding Personal Injury and Advertising Injury Liability under a Commercial General Liability Insurance Policy

Coverage B: Personal and Advertising Injury Section of CGL Insurance Policy is separate from Coverage A: Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy.

The CGL Policy has a separate limit or Personal and Advertising Injury Liability. However, any claim paid under Coverage B: Personal and Advertising Injury Liability will also reduce the General Aggregate Limit under the Commercial General Liability Insurance Policy. You can read our detailed blogpost on Limits under a Commercial General Liability Insurance Policy to learn more.

Similar to Coverage A: Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy, the Personal and Advertising Injury Liability under the CGL Policy will also pay for Legal Expenses and Compensatory Damages but for claims arising out of Personal and Advertising Injury.

One thing to know is that Personal and Advertising Injury will most likely involve intentional acts while the requirement to claim under the Bodily Injury and Property Damage is just the occurrence of an accident.

Additionally, for Coverage B: Personal and Advertising Injury to trigger, it is necessary that the offense committed by the Insured arises out of the Business Activities of the Insured. Additionally, the onus of proving that the offense falls within the definition of Personal and Advertising Injury lies on the Insured who is seeking coverage under the CGL Policy.

What are the exclusions under Coverage B: Personal and Advertising Injury Liability Section of a Commercial General Liability Insurance Policy?

Coverage B: Personal and Advertising Injury Liability Section has separate exclusions than Coverage A: Bodily Injury and Property Damage Section of a CGL Policy.

The Exclusions are as follows:

This insurance does not apply to:

Personal and advertising injury:

1. Caused by or at the direction of the Insured with the knowledge that the act would violate the rights of another and would inflict personal and advertising injury;
2. Arising out of oral or written publication of material, if done by or at the direction of the Insured with knowledge of its falsity;
3. Arising out of oral or written publication of material whose first publication took place before the beginning of the Policy Period;
4. Arising out of a criminal act committed by or at the direction of any Insured;
5. For which the Insured has assumed liability in a contract or agreement. This exclusion does not apply to liability or damages that the Insured would have in the absence of the contract or agreement;
6. Arising out of a breach of contract, except an implied contract to use another’s advertising idea in Insured’s advertisement;
7. Arising out of the failure of goods, products or services to conform with any statement of quality or performance made in Insured’s advertisement,
8. Arising out of the wrong description of the price of goods, products or services stated in Insured’s advertisement;
9. Committed by an Insured whose business is advertising, broadcasting, publishing or telecasting.
10. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time;
11. Arising out of the manufacture of mining of, use of, sale of, installation of, removal of, distribution of, or exposure to asbestos and/or silica products, asbestos and or silica fibres or asbestos and/or silica dust, or to any obligation of the Insured to indemnify any party because of damages arising out of the manufacture of mining of use of, sale of, installation of, removal of, distribution of, or exposure to asbestos and/or silica products, asbestos and/or silica fibres or asbestos and/or silica dust; or
12. Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, invasion, act of foreign enemy, civil commotion, factional civil commotion, terrorism, military or usurped power, rebellion or revolution.
13. a. To a person or the spouse, child, parent, brother or sister of that person arising as a consequence of bodily injury to that person at :
    • Refusal to employ that person:
    • Termination of that person’s employment; or
    • Employment-related practices, policies, acts or omissions, such as coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation or discrimination directed at that person; or

whom any of the employment related practices describe in paragraphs (i), (ii) or (iii) above is directed. This exclusion (xiii) applies whether the Insured may be liable as an employer or in any other capacity; and to any liability to share damages with or repay someone else who must pay damages because of the injury.

Any loss, cost or expense arising out of any:

1. Request, demand or order that any Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants; or
2. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, pollutants.

Final Take

This article explains in detail an often-neglected part of the Commercial General Liability Insurance Policy: Personal and Advertising Injury. It is important to go through the CGL Policy Wordings in detail to understand the CGL Policy coverages. It is prudent to take the assistance of an experienced insurance broker before purchasing a CGL Policy. The broker will assist you in comparing CGL Policy coverage and also in reducing the cost of CGL Policy by negotiating with multiple insurance companies.

If you wish to purchase a Commercial General Liability Insurance Policy, you can email us at insurance@qian.co.in or call us on 022-22044989.

1. Commercial General Liability Insurance
2. Secure your Business from Claims of Bodily Injuries and Property Damage
3. What is a Commercial General Liability Insurance Policy?
4. What are the coverages under a Commercial General Liability Insurance Policy?
5. What does Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy Cover?
6. What are the Add-On Covers under a Commercial General Liability Insurance Policy?
7. What is Personal and Advertising Injury Liability under a Commercial General Liability Insurance Policy?
8. What are the Coverages under the Personal and Advertising Injury Liability section of a Commercial General Liability Policy?
9. What does the Medical Payments Section of a Commercial General Liability Insurance Cover?
10. What are the exclusions under a Commercial General Liability Insurance Policy?
11. Will my Commercial General Liability Insurance Policy Cost be higher if I purchase the Policy through an Insurance Broker?
12. Get a FREE 1 Hour Consultation for your Commercial General Liability Insurance Policy