When you are running a business, you are not just responsible for your physical operations. You are also liable for how you interact with people and how you promote your brand. That's where commercial general liability insurance becomes vital, particularly in the areas of personal injury liability and advertising injury liability. These are not just legal terms on a policy document; they are real protections that can save your business from major financial setbacks.
In this blog, let's understand what personal and advertising injury liability covers, why it matters in your insurance plan and what it doesn’t cover.
What does personal injury liability include?
Personal injury liability is a part of a commercial general liability policy that protects your business when you are legally responsible for harm caused to a person’s reputation or rights, rather than physical harm.
Here’s what personal injury liability within commercial general liability generally includes:
- False arrest, detention or imprisonment – For example, if a customer is wrongfully held by store security.
- Malicious prosecution – If your business sues someone without a valid reason and they suffer because of it.
- Wrongful eviction or entry – When your business is accused of invading privacy.
- Defamation (libel or slander) – If your employee says or writes something untrue that damages someone's reputation.
- Violation of the right to privacy – Sharing private information without consent, even by mistake.
This type of protection falls under personal injury cover, which ensures that you are not paying out of pocket for legal defence, settlements or damages awarded to claimants.
What does advertising injury liability include?
You might not realise it, but your marketing strategies can land you in legal trouble. That’s where advertising injury liability plays a crucial role in your general liability policy.
Here's what it typically includes:
- Copyright infringement – Using someone else’s creative work in your marketing.
- Slogan or logo theft – Using a phrase or symbol that’s already trademarked.
- Defamation in advertising – Making negative claims about a competitor in your ads.
- Misappropriation of advertising ideas – Using marketing strategies or concepts you don’t have permission for.
If someone sues your business for any of the above, this part of your policy can cover the costs. In short, advertising injury liability protects your brand from the legal risks tied to how you market and promote.
Importance of personal injury liability in a commercial general liability policy
You may wonder do non-physical injuries need protection? The answer is yes, especially in today's digital and litigious world. Here’s why having personal injury liability in your commercial general liability policy is so important:
- Social media risks – Employees or your business accounts could unintentionally defame someone.
- Customer interaction risks – A small action by your staff, like detaining someone or asking to check bags, could lead to a lawsuit.
- Reputation protection – Legal claims for personal injuries can damage your brand image and finances.
A commercial general liability policy doesn’t just shield you from physical liability claims; it also offers personal injury protection insurance. This makes sure your business stays protected even from intangible but equally harmful lawsuits.
Role of advertising injury liability in commercial general liability policy
With increasing dependence on digital marketing, advertising has become a key part of business operations. However, it also increases the risk of legal issues. That’s why advertising injury liability in your commercial general liability policy is so valuable:
- Protects against intellectual property mistakes – Using copyrighted images or phrases unknowingly.
- Reduces legal stress – Covers your legal defence if you are accused of stealing an advertising idea.
- Supports brand trust – Shows your business is responsible and prepared for unforeseen circumstances.
Even a small advertising error could lead to a lawsuit. So, if you are promoting your business across platforms, this coverage is a must.
Common exclusions in personal and advertising injury liability coverage
While these covers offer solid protection, there are certain things they don’t cover. It is crucial to know these exclusions so you don’t assume you are protected when you are not.
Some of the common exclusions include:
- Intentional acts – If you deliberately cause harm or violate someone’s rights, it is not covered.
- Contractual liabilities – Liabilities assumed under a contract may not be included unless specified.
- Infringement of copyright on software – This usually requires a separate policy.
- False advertising – If you are proven to have knowingly misled consumers.
- Criminal acts – Any personal or advertising injury resulting from criminal behaviour is excluded.
- Employment-related claims – These are usually covered under a separate employment practices liability policy.
Understanding these exclusions helps you fill gaps in your coverage with add-ons or additional policies.
Conclusion
Running a business comes with many risks, some visible, others not so obvious. Personal injury cover and advertising injury liability help protect your business from the lesser-known but potentially damaging claims. These are vital parts of a robust commercial general liability policy, especially in the business environment where digital interaction and customer engagement are rising fast.
They offer real protection from legal costs, reputational damage and operational disruptions. Pair this with professional liability insurance to cover errors in professional services and you’ll have broader protection for your enterprise. Remember, good insurance isn’t just about meeting legal requirements; it is about ensuring peace of mind and financial security.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.