Defamation: Bodily Injury Insurance Claim?

Defamation is a civil wrong that consists of statements that harm someone's reputation. It is typically classified as either libel (written defamation) or slander (spoken defamation). While the First Amendment protects freedom of speech, it does not protect individuals or businesses from defamation lawsuits. To prove defamation, the statement must be false, communicated as a fact to a third party, cause harm to the plaintiff, and be made with negligence or malicious intent. While defamation is not considered bodily injury, certain types of insurance, such as commercial general liability insurance and personal injury insurance, can provide coverage for defamation claims.

Defamation insurance covers legal fees and damages

Defamation is a civil wrong that consists of statements that injure a person or organisation's reputation. It can be written (libel) or spoken (slander).

Defamation insurance, also known as libel and slander insurance, can cover legal fees, potential damages, and settlement payments that may arise from defamation lawsuits. It is important to note that defamation insurance will not cover all claims. Every policy is different, and there is no guarantee that a respective insurance company or policy will offer such coverage.

• Commercial general liability insurance: This type of insurance covers common business risks, such as third-party bodily injuries and property damage, as well as advertising injuries. The advertising and personal injury (PI) liability section of the commercial general liability policy typically includes insurance for defamation claims.
• Homeowner's insurance: Homeowner's insurance policies typically allow someone to include "excess liability" coverage, which can provide additional limits above and beyond primary liability policies. This type of coverage can be useful if you are facing a claim of defamation, as it may cover your expenses in defending the claim or even a portion of a settlement amount.
• Personal injury insurance: Personal injury insurance can be added to homeowner's insurance or purchased as a separate umbrella policy. It typically covers emotional injury caused by spoken or written words and can be useful in cases of defamation.
• Cyber liability insurance: Many modern cyber insurance policies cover defamation in their media liability section. These policies often fill the gaps in coverage that may exist in commercial general liability policies.
• Directors and officers insurance: Some directors and officers insurance policies include "personal injury" coverage, which is an umbrella term that covers libel and slander. However, it is important to review your unique policy to ensure that the coverage extends beyond the board of directors.

It is important to review your insurance policy carefully to understand what is covered and what is not. If you are unsure, it is recommended to speak with an insurance professional to get clarity and explore your options for adding defamation coverage if needed.

Libel and slander are types of defamation

To prove defamation, the plaintiff must show that:

• A false statement was presented as a fact.
• The statement was communicated to a third party.
• The statement caused harm to the plaintiff's reputation or income.
• The statement was made with negligence, or at least without adequate research to verify its truth.

Libel and slander are treated the same in defamation lawsuits, although historically libel was considered the more serious offence. Defamation lawsuits can be tricky because they test the limits of free speech. However, individuals have a right to protect their reputations from false statements.

Proving defamation

Defamation is a statement that injures a third party's reputation. It includes both libel (written statements) and slander (spoken statements). Due to the complexity of defamation laws, proving defamation can be challenging. However, there are several key elements that must be satisfied to prove prima facie defamation:

False Statement

The plaintiff must prove that the statement made by the defendant was untrue. This means demonstrating that the statement was an intentional misrepresentation or lie. It is important to note that statements of pure opinion or rhetorical hyperbole that cannot be proven true or false are not considered defamatory.

Publication or Communication

It must be shown that the defamatory statement was communicated to a third party beyond the plaintiff. This can include written or verbal communication, as well as gestures, facial expressions, or other physical actions that undermine the reputation of the plaintiff.

Fault

The plaintiff must demonstrate fault on the part of the defendant, amounting to at least negligence. This means proving that the defendant acted with reckless disregard for the truth or with knowledge of the falsehood. The standard of fault varies depending on whether the plaintiff is a public official, public figure, or private individual. Public officials and public figures must prove "actual malice," while private individuals generally need to show negligence.

Harm or Damage

It must be established that the defamatory statement caused harm or damage to the plaintiff's reputation, business, or financial standing. This could include loss of money or employment opportunities. It is important to note that the statement must have already caused harm, and the potential for future harm is not sufficient.

Unprivileged Statement

The statement must also be considered "unprivileged." Privileged statements are those made in certain scenarios, such as witness testimony in judicial proceedings or statements made by lawmakers in legislative chambers, which cannot be considered defamatory.

Additional Considerations for Public Figures

If the plaintiff is a public figure, they must prove "actual malice," meaning that the defendant published the statement with knowledge that it was false or with reckless disregard for the truth. This additional requirement makes it more challenging for public figures to successfully prove defamation.

Defamation insurance for businesses

Defamation is a statement that injures a third party's reputation. It is an umbrella term for libel and slander, which are both forms of defamation. Libel is a written statement, whereas slander is a spoken statement. Defamation can result in distress and income loss for individuals and organisations.

Businesses can protect themselves from defamation claims with professional indemnity insurance, which can cover legal fees and compensation payments to the claimant. This type of insurance is not a legal requirement, but it may be a compulsory requirement for some regulatory bodies. It is also often demanded by clients.

There are four elements that need to be proven for a statement to be considered defamatory:

• The statement must be false and presented as a fact.
• The statement must be communicated to a third party.
• The statement must be made with negligence, or at least be communicated with a reckless disregard for the truth.
• The statement must have caused harm to the subject.

Defamation insurance is typically included in commercial general liability insurance, which is a standard insurance policy issued to businesses and organisations. However, it is important to note that general liability policies exclude coverage for insureds engaged in media businesses.

• A fitness instructor criticises another trainer, saying they are incompetent, and the trainer loses business as a result.
• A management consultant falsely claims that a business has been participating in illegal or unethical activities.
• An employee shares a joke about a client via email or retweets a piece of gossip.
• A salesman promotes his company's services by making derogatory comments about a competitor.

In summary, defamation insurance can provide essential protection for businesses against the financial and reputational damage caused by defamation claims.

Defamation insurance for individuals

Defamation insurance is an important protective measure for individuals who find themselves accused of defamation. Defamation is a civil wrong and consists of statements that injure someone's reputation. Defamation comes in two forms: libel, which is written defamation, and slander, which is spoken defamation. Libel and slander are not protected by the right to free speech.

Defamation insurance, also known as libel and slander insurance, covers legal fees, potential damages, and settlement payments that may arise from defamation lawsuits. It is important to note that defamation insurance only extends to parties who acted in good faith or unknowingly—it does not cover individuals who published material they knew to be false or who acted recklessly.

Most insurance policies do not include defamation claims unless specifically purchased. However, individuals can add "excess liability" coverage to their homeowner's insurance policies to provide additional protection beyond primary liability policies. This type of coverage can be thought of as an "insurance on your insurance" or an umbrella policy. It is important to explicitly request personal injury coverage from your insurance carrier, as most do not offer it automatically. This coverage typically costs around $30 per year.

Additionally, umbrella insurance can provide liability protection in the event of a libel or slander lawsuit. This type of insurance typically ranges from $1 million to $10 million in coverage but often requires a minimum amount of homeowners liability coverage.

It is worth noting that defamation insurance policies do not cover all claims. Intentional or malicious acts, such as knowingly making a false statement to defame someone, are generally excluded from coverage.

Frequently asked questions