Advertising is an essential marketing tool for companies to build brand awareness, attract new customers, and ultimately drive sales. However, with advancements in technology and AI tools, many companies are opting to produce advertising campaigns in-house without fully understanding the potential legal implications. As a result, the absence of adequate protection against possible legal issues could pose a significant risk to a company’s long-term success.
What is Advertising Injury? Is Your Business At Risk?
Advertising injury coverage, which is a standard component of a broader commercial general liability (CGL) insurance policy, provides coverage from specific claims that can arise from your advertising and marketing communications. These claims are related to non-physical harms, such as libel, slander, or copyright infringement.
For example, you advertise your business on YouTube, and an artist claims your background music infringes on their copyright, suing you for thousands of dollars in damages. If you have advertising injury coverage, the insurer will defend your business against the claim, including paying any damages and litigation costs if your business is found at fault. In today’s digital world, every company is at risk, as a single social media post or a catchy slogan could lead to a costly legal battle.
Slander Vs. Libel: What’s the Difference
While both slander and libel fall under the umbrella of defamation, it is important to understand the distinction between the two.
- Libel is when someone makes a defamatory statement against another in a written article, a photograph, a social media post, or a video.
- Slander is a defamatory statement that is made verbally.
In Florida, defamation claims are taken seriously by the courts, and a business can be held liable for either form.
Common Advertising Injury Claims in Florida
Advertising injury claims are not limited to large corporations; they can affect any business, regardless of size or industry. For a Central Florida-based business, a claim might arise from:
- A roofer who runs an advertisement claiming a competitor uses “subpar materials that will leak after the first storm,” which could be a claim of slander or disparagement if the statement is false.
- An HVAC company that uses a stock photo in its social media ad without a proper license, leading to a copyright infringement lawsuit from the photographer.
- A general contractor who uses a slogan or logo that is too similar to another local contractor may lead to a trademark infringement claim.
What it covers:
Advertising injury coverage typically protects against legal costs, settlements, and judgments from claims alleging libel, slander, disparagement, violation of privacy rights, or copyright and trademark infringement. It covers your legal defense, whether the claim is valid or not.
What it doesn’t cover:
This coverage typically does not apply to intentional criminal acts, false advertising about your own products (e.g., claiming a product can do something it cannot), or claims related to professional mistakes or negligence (which would be covered by Errors & Omissions insurance).
How Much Does it Cost?
The cost of advertising injury coverage is highly variable and is usually a part of your overall commercial general liability (CGL) premium. The price is influenced by several factors, including your industry, the size of your business, the frequency and reach of your advertising, and the policy limits you choose.
Other Business Liability Insurance Coverage Options
Depending on your business or industry, talk to your CIS agent about supplemental coverage options in addition to advertising injury, such as:
- Commercial General Liability (CGL): The umbrella policy that protects against claims of bodily injury and property damage.
- Cyber Liability Insurance: Coverage against financial losses from data breaches and cyberattacks.
- Errors and Omissions (E&O): Also known as professional liability, this covers claims of negligence or mistakes in your professional services.
We Can Protect Your Florida Business from Advertising Injury Claims
Commercial Insurance Specialists is a Trusted Choice independent agency, which reflects our commitment to providing exceptional service and a broad range of insurance options, including protecting your company from costly advertising injury claims and other liabilities. We understand that every business is unique, which is why we offer tailored solutions to fit your specific needs and budget. We serve clients across multiple industries, including general contractors, roofers, and HVAC companies in Land O Lakes, Plant City, Pinellas Park, Zephyrhills, and surrounding Gulf Coast and Central Florida communities.
Just give us a call, and we will shop around to find the best rates and coverage options for your business from top-rated insurers. Contact us today for a free, no-obligation commercial property insurance quote!
