Key Takeaways
- Coverage B protects against PERSONAL INJURY offenses (false arrest, malicious prosecution, wrongful eviction, slander, libel, invasion of privacy) and ADVERTISING INJURY offenses.
- Unlike Coverage A, Coverage B is triggered by an OFFENSE (not an occurrence)—the wrongful act itself is the trigger.
- ADVERTISING INJURY includes oral or written publication that slanders/libels, violates privacy, uses another's advertising idea, or infringes copyright in advertisements.
- Coverage B has a PER-PERSON limit (often equal to the occurrence limit) and is subject to the GENERAL AGGREGATE, not a separate aggregate.
- Key exclusions include KNOWING violations (intentional wrongdoing), material published BEFORE the policy period, and content the insured KNEW was false.
Last updated: December 2025
Coverage B: Personal and Advertising Injury
What Coverage B Provides
Coverage B protects the insured against liability for personal injury and advertising injury arising from specified offenses.
Key Difference from Coverage A:
- Coverage A = Physical injury (bodily injury, property damage)
- Coverage B = Non-physical harm (reputational, privacy, intellectual property)
Personal Injury Offenses
Coverage B covers these specific offenses:
| Offense | Definition | Example |
|---|---|---|
| False Arrest | Unlawfully restraining or confining someone | Store security wrongly detains customer |
| Malicious Prosecution | Initiating legal proceedings without cause | Filing baseless criminal complaint |
| Wrongful Eviction | Illegally removing tenant from premises | Landlord locks out tenant improperly |
| Wrongful Entry | Entering property without right | Employee enters home without permission |
| Invasion of Privacy | Violating right to be let alone | Publishing private facts about customer |
| Libel | Written defamation | Publishing false statements about competitor |
| Slander | Oral defamation | Making false verbal statements about person |
Advertising Injury Offenses
Coverage B also covers injuries arising from advertising activities:
| Offense | Example |
|---|---|
| Oral or written publication of defamatory material | Ad falsely claims competitor's product is dangerous |
| Oral or written violation of privacy | Ad uses person's photo without consent |
| Misappropriation of advertising ideas | Copying competitor's unique ad campaign |
| Copyright infringement in advertising | Using copyrighted music in commercial |
| Use of another's slogan or tagline | Adopting competitor's trademarked phrase |
The "Offense" Trigger
Unlike Coverage A's "occurrence" trigger, Coverage B uses an offense trigger:
| Coverage A | Coverage B |
|---|---|
| Triggered by occurrence (accident) | Triggered by offense (wrongful act) |
| Injury must occur during policy period | Offense must be committed during policy period |
| Continuous exposure doctrine applies | First publication or first offense rule |
First Publication Rule: For offenses like libel, the offense is committed when the material is FIRST published.
Limits for Coverage B
| Limit Type | How It Works |
|---|---|
| Per Person/Organization Limit | Maximum for claims from one person/entity |
| General Aggregate | Coverage B is subject to General Aggregate |
| No Separate Aggregate | Unlike Products-Completed Operations |
Typical Limits:
- Personal/Advertising Injury Limit: $1,000,000
- General Aggregate: $2,000,000
Coverage B Exclusions
These offenses are NOT covered:
Knowing Violations
| Exclusion | Details |
|---|---|
| Knowing violation of rights | Insured knew they were violating rights |
| Publication of false material | Insured knew statement was false |
| Criminal acts | Committed by or at direction of insured |
Publication Exclusions
| Exclusion | Details |
|---|---|
| Material published before policy | Must be first published during policy period |
| Material published at insured's direction | With knowledge of falsity |
Business-Related Exclusions
| Exclusion | Details |
|---|---|
| Wrong description of prices | Price or quality misrepresentation in ads |
| Infringement of trademark/trade dress | Other than in advertisement |
| Electronic chatroom | Injury in electronic forum run by insured |
| Insureds in same business | Injury to competitors in same market |
Professional/Contractual Exclusions
| Exclusion | Details |
|---|---|
| Breach of contract | Except implied warranty of fitness |
| Failure to conform to statements | Product not matching advertising |
| Professional services | Requires separate E&O coverage |
Common Coverage B Scenarios
| Scenario | Covered? | Why |
|---|---|---|
| Store falsely accuses customer of theft and detains them | ✓ Yes | False arrest, invasion of privacy |
| Company posts negative review of competitor with false claims | ✓ Yes | Libel, advertising injury |
| Business uses competitor's trademarked logo in advertisement | ✓ Yes | Infringement in advertising |
| Employee makes false statement about coworker | ✗ No | Employee matters excluded |
| Company knowingly publishes false health claims | ✗ No | Knowing falsity excluded |
Key Exam Points
- Seven Personal Injury Offenses: False arrest, malicious prosecution, wrongful eviction, wrongful entry, invasion of privacy, libel, slander
- Advertising = In Ads Only: Copyright/trademark infringement covered only if in advertisements
- Knowledge Defeats Coverage: Knowing violation of rights is excluded
- First Publication Rule: Offense committed when first published
- No Products Aggregate: Coverage B uses General Aggregate only
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Test Your Knowledge
A retail store security guard detains a customer suspected of shoplifting, but no theft occurred. The customer sues for false imprisonment. Which CGL coverage applies?
A
B
C
D
Test Your Knowledge
A company uses a competitor's copyrighted photograph in a print advertisement. This would be covered under Coverage B as:
A
B
C
D
Test Your Knowledge
Which of the following would be EXCLUDED from Coverage B?
A
B
C
D
Up Next
8.4 Coverage C: Medical Payments
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