Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida 2-20 General Lines Agent is reviewing a commercial general liability (CGL) policy with a business owner. The owner is concerned about potential lawsuits arising from their advertising activities. Which coverage part of the CGL policy would address claims of defamation or copyright infringement in advertising?
- ACoverage C - Medical Payments
- BCoverage B - Personal and Advertising Injury Liability
- CCoverage A - Bodily Injury and Property Damage Liability
- DCoverage D - Damage to Premises Rented to You
Show answer & explanationAnswer & explanation
Correct answer: B. Coverage B - Personal and Advertising Injury Liability
Coverage B of the Commercial General Liability (CGL) policy provides coverage for 'Personal and Advertising Injury.' This includes offenses such as libel, slander (defamation), false arrest, malicious prosecution, wrongful eviction, and copyright infringement in advertising.
Why the other options are wrong
- A. Coverage C provides medical payments for injuries on the insured's premises, regardless of fault, and is not liability coverage.
- C. Coverage A addresses bodily injury and property damage, which are physical harms, not reputational or intellectual property harms.
- D. Coverage D is for damage to premises rented to the insured, which is a property coverage, not liability for advertising harm.
CGL Coverage B - Personal and Advertising Injury
CGL Coverage B protects businesses against claims of personal injury (e.g., false arrest, libel) and advertising injury (e.g., defamation, copyright infringement) arising from their operations.
- Covers non-physical injuries.
- Includes offenses like libel, slander, false arrest, wrongful eviction.
- Covers copyright infringement and misappropriation of advertising ideas.
- Distinct from bodily injury/property damage liability.
Memory trick: A for Body/Property, B for Personal/Ads, C for MedPay, D for Rented.