Updated: March 16, 2026
Advertising & Editorial Disclosure
Personal and advertising injury coverage pays for legal defense and settlements for legal claims involving libel, slander, wrongful eviction and certain advertising violations. Listed as Coverage B in general liability insurance policies, this coverage pays for legal defense and settlements when customers, competitors or tenants sue you over reputation damage, communication issues or advertising disputes.
Coverage B terms vary by insurer and policy. This guide covers:
Personal and advertising injury coverage (Coverage B) responds when someone sues your business for non-physical harms involving advertising, communication or occupancy issues. Coverage B pays for legal defense and settlements or judgments up to your policy limits.
General liability insurance structures Coverage B limits in two ways:
Most general liability policies handle personal and advertising injury claims without a deductible. The insurer covers eligible defense costs and settlements up to your policy limits once it approves the claim. Review your policy declarations page to confirm your Coverage B limits and terms.
Personal and advertising injury coverage pays for legal defense and settlements when someone sues your business for specific "offenses" listed in general liability policies:
Libel and slander
(defamation) | Your business damaged someone's reputation through written or spoken statements. | A competitor sues after your ad falsely claims they're "unlicensed." |
Publication that violates privacy rights | Your business published content that violated someone's privacy. | You post a customer photo/testimonial without their permission. |
False arrest, detention or imprisonment | Your business unlawfully detained someone. | An employee detains a customer suspected of shoplifting, and the customer was innocent. |
Malicious prosecution | Your business wrongfully filed charges against someone. | Someone your business accused sues after prosecutors drop the charges. |
Wrongful eviction, entry or private occupancy violations | A tenant was illegally evicted, had their space entered without permission or had their occupancy rights violated. | A tenant sues after you lock them out without following eviction procedures. |
Use of another's advertising idea | A competitor sues because your business copied their advertising concept. | A competitor sues after your campaign mirrors their ad strategy. |
Copyright, trade dress or slogan infringement in an ad | Your business used someone's protected creative content in an advertisement. | You use a copyrighted image in a paid ad without authorization. |
Personal and advertising injury coverage excludes:
Bodily injury or property damage | Coverage A handles these claims, not Coverage B. | Never covered | A customer gets injured in your store. |
Intentional wrongdoing and knowing violations | Coverage B excludes deliberate acts and statements you know are false. | You didn't know the action violated someone's rights or believed the statement was true when published. | You knowingly publish false claims about a competitor. |
Breach of contract | Contract disputes fall outside Coverage B unless tied to a covered offense. | The claim also involves defamation or another covered offense arising from the same situation. | A client sues you for missing a marketing deliverable deadline. |
Professional services errors (E&O exposures) | Professional liability insurance covers service mistakes, not Coverage B. | Coverage B pays for defense when the claim includes defamation or disparagement allegations alongside professional negligence. | Your marketing campaign error costs a client sales, and they sue for negligence. |
Trademark and patent infringement | General liability policies exclude or sharply limit trademark and patent coverage. | The lawsuit includes disparagement claims or involves your use of another business's advertising idea rather than their trademark. | Someone sues you for using their brand name or logo without permission. |
Copyright outside advertisements | Coverage B covers copyright claims only when infringement occurs in "your advertisement." | You used the copyrighted material in promotional content meant to attract customers, even if not a traditional ad. | You copy website content not used in an ad. |
Criminal acts | Liability policies exclude illegal activity. | Never covered | Fraud or intentional harassment. |
Employment-related claims | Employment practices liability insurance (EPLI) covers these claims, not Coverage B. | Never covered | A former employee sues for discrimination or harassment. |
Data breaches and cyber incidents | Cyber liability insurance covers data and security breaches. | Coverage B pays for privacy violation claims involving published private information, not electronic security failures. | Hackers steal and expose customer data. |
Personal and advertising injury coverage pays for legal defense when someone sues your business over what you publish, advertise or communicate. Defense costs for these claims start immediately, even when the alleged harm is subjective or hard to prove.
Without Coverage B, legal fees can threaten your business finances. A straightforward defamation dispute generates $15,000 to $90,000+ in legal costs, sometimes exceeding $100,000 before dismissal.
Coverage B applies when three conditions are met:
This three-part test (covered offense, no exclusions, available limits) works for evaluating most business insurance coverage components.
Before buying general liability insurance, answer these questions:
Learn about other general liability insurance components:
Compare other coverage types:
Understand general liability costs and coverage options:
About Angelique Palenzuela-Cruz
Angelique Palenzuela-Cruz is a Content Writer at MoneyGeek specializing in business insurance. She focuses on general liability, workers' compensation and professional liability coverage, helping small business owners cut through policy jargon and understand what they're actually buying.
Angelique has spent over five years reporting on personal finance, with deep experience in both insurance and lending markets. Her psychology background also gives her a unique understanding of how people actually process difficult financial decisions, allowing her to meet readers where they are, simplify complex concepts and build decision making frameworks that give them confidence. Whether you're learning about policies, comparing providers or trying to figure out requirements, Angelique does the legwork, digging into regulations, analyzing policy language and testing her explanations against agent-level standards so you get straight answers without fluff.
