Personal and Advertising Injury: Protects Your Business When Words or Ads Cause Harm

Personal and Advertising Injury (Plain English)

Personal and Advertising Injury coverage protects your business if something you say, write, or advertise causes non-physical harm to others, like damaging someone's reputation or using protected material by mistake. If you face a lawsuit over things like libel, slander, or copyright infringement, this coverage pays your legal costs and settlements up to your policys limit. The key thing to understand is that it protects your business from expensive legal risks and reputation damage that arent covered by standard liability policies.

The Fine Print: What Really Matters

Your policy has coverage limits (often $1 million per occurrence or aggregate), and most policies have no deductible for legal defense, but you may have a deductible for settlements. Only claims for covered offenses committed during the policy period (and sometimes first reported in that period) are eligible. The insurer pays attorneys chosen by them, not always your choice, and some costs, like punitive damages or intentional wrongdoing, are not covered. Always review what actions trigger the coverage and when you must report potential claims to stay protected.

Personal and Advertising Injury vs. General Liability Bodily Injury

Personal and Advertising Injury is NOT the same as Bodily Injury coverage. Personal and Advertising Injury covers financial risks from things you say, write, or advertise, while Bodily Injury covers injuries or property damage to third parties. You typically need both for complete protection.

Who Needs Personal and Advertising Injury?

You typically need this coverage if:

• You own a business that advertises, posts online, or produces content
• You work with clients or the public in any professional capacity

You might skip this coverage if:

• You operate solo with no advertising, web presence, or client outreach

Coverage Limits and Options

Limits for Personal and Advertising Injury are usually shared with your overall general liability policy ($1M per occurrence, $2M aggregate are common). There are typically no deductibles for legal fees; you may pay one for damages or settlements. Higher limits and coverage extensions are available—tailor coverage based on your businesss risk profile. Ask about media liability if you do a lot of online content.

What's NOT Covered by Personal and Advertising Injury

This coverage does NOT cover:

• Intentional or criminal acts: If you knowingly spread false info or break the law, youre not covered.
• Employment-related claims: Disputes with employees over workplace issues are not included.
• Contractual liability: Promises you make in contracts are typically excluded.

For these risks, you'd need Employment Practices Liability or custom business policies.