Defamation Insurance Products

It can only take one article to completely destroy someone’s image. This is why insuring against defamation is important, as action needs to be taken quickly to be able to restore any potential misinformation or wronging.

Defamation can be categorized in two ways:

• Libel, the publication of a false statement damaging to a person’s reputation
• Slander, a false verbal statement damaging to a person’s reputation

In order to prove an act of defamation, the injured party must be able to prove the following:

• The statement is false
• The statement caused personal injury
• The statement was communicated to a third party
• The statement is not privileged

• A business or organization
• A high-profile individual, like a politician or celebrity
• A product or produce

Some acts of defamation may have more serious consequences than others.

For example, false accounts regarding the efficiency of a product are more easily disproved than an accusation of an historical criminal act. That said, if the publication of an erroneous statement can cause serious financial harm to a brand or the reputation of a company or individual, defamation coverage is essential.

• Libel and slander
• Reparation costs
• Legal expenses
• Medical expenses (in the case of shock or anguish)

As part of a Personal Injury or Excess Liability insurance policy, Defamation coverage can also include financial protection in case of the following:

• False imprisonment
• Wrongful eviction
• Invasion of privacy
• Malicious prosecution

Defamation Insurance not only covers reversing the situation but the costs involved in restoring the innocence of the injured party as well as any additional costs and expenses incurred afterwards as a consequence.

As the insurance industry tries to catch up with technology, make sure that libellous statements published online are not excluded. The rise of social media has seen a wide range of libellous comments made that can be removed as quickly as they appeared. While there are specific insurance packages available for online slander but make sure that this is not a gap in coverage if specifically required.

Other excluded areas regarding acts of Defamation include:

• A libellous or slanderous statement related to the same/owned business
• An intentionally false comment or statement that defames someone else
• Policies not in force at the time the comment was said or written

The cost will either be included in the overall package or an amount calculated as extended cover taking into consideration the size of the company, the potential impact of a libellous act and an estimated loss that can afford to be covered.

Defamation coverage can be found as extensions or add-ons in the following coverage areas:

• Professional Liability
• Employers’ Liability
• Directors and Officers Liability
• Business Interruption
• Multimedia Liability
• Commercial General Liability
• Umbrella/Excess