Advertising

Advertising is necessary for the growth of most businesses.

Most businesses will need to advertise their goods or services. You can purchase liability insurance for the personal injury that can be caused by the act of advertising your products, services or goods. Examples of advertising injury could include an injury which results from doing one of the following situations:

  • the infringement of title, copyright, or slogan
  • written or oral publication of material that libels or slanders an organization or a person's service, goods or products.
  • written or oral publication of material that violates a person(s) right of privacy (PIPEDA).
  • misappropriation of a style of doing business or of advertising ideas.

All policies have limits and exclusions. This insurance will not respond to a claim if the advertising injury:

  • arises out of the written or oral publication of material which was published before the effective date of the policy
  • arises out of the written or oral publication of material that was done at the direction or done by the insured with knowledge of its falsity
  • arises out of the wrong description of the price of products, goods or services
  • arises out of the failure of the services, goods or products to conform with advertised performance or quality
  • arises out of breach of contract, other then the misappropriation of advertising ideas under an implied contract
  • claims for which the insured has assumed liability in an agreement or contract. This exclusion would not apply to the liability for compensatory damages that the insured would have had in the absence of the agreement or contract
  • arises out of the willful violation of an ordinance or penal statute committed with the consent or by the insured

Examples could include a situation as placing an advertisement in the local newspaper and using a slogan that belongs to another company. If you were unaware of the error then the policy would likely respond to cover whatever compensatory damages are awarded. Another situation could arise whereby you publish a picture which has a person in it and it violates their right of privacy. Does your business need advertising liability? Discuss this with your risk manager, agent or broker.