CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments

CGL Coverage B: Personal and Advertising Injury Liability

While Coverage A handles physical harm (BI/PD), Coverage B of the ISO CG 00 01 covers non-physical, intangible torts grouped as "personal and advertising injury." Like Coverage A, the insurer has the right and duty to defend and stops defending once the limit is exhausted. Coverage B is triggered by the offense being committed during the policy period in the coverage territory — there is no "occurrence" requirement because these are intentional-style business torts, not accidents.

The Seven Defined Offenses

The policy defines personal and advertising injury as injury arising out of one or more of these offenses:

1. False arrest, detention, or imprisonment
2. Malicious prosecution
3. Wrongful eviction or wrongful entry / invasion of right of private occupancy
4. Oral or written publication that slanders or libels a person/organization
5. Oral or written publication that violates a person's right of privacy
6. Use of another's advertising idea in your advertisement
7. Infringing on another's copyright, trade dress, or slogan in your advertisement

Memorize these seven — the exam often asks which torts fall under Coverage B versus which are excluded (patent and trademark infringement are excluded).

The Named Offenses Under Coverage B

Coverage B does not respond to negligence; it pays for a closed list of offenses. The exam expects you to recognize them: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction, wrongful entry, or invasion of the right of private occupancy; oral or written publication that slanders or libels a person/organization or disparages goods; oral or written publication that violates a person's right of privacy; the use of another's advertising idea; and infringing upon copyright, trade dress, or slogan in the insured's advertisement.

Coverage C: Medical Payments

Coverage C pays reasonable medical expenses for bodily injury to a third party regardless of fault, provided the injury occurs on the insured's premises or arises from the insured's operations and is reported within a stated time (often expenses incurred within one year). It functions as goodwill coverage — small, no-fault payments that can head off larger liability claims.

Worked Coverage B Scenario

A landlord improperly locks out a tenant and a magazine ad copies a rival's slogan. The wrongful eviction and the slogan infringement are both Coverage B offenses, payable under the personal-and-advertising-injury limit — but Coverage A would not respond because neither is bodily injury or property damage. The exam tests whether candidates route intangible offenses to Coverage B rather than mistakenly seeking them under Coverage A.

Coverage B Limits and Exclusions

Coverage B has its own Personal and Advertising Injury Limit (commonly $1,000,000), and payments also erode the General Aggregate. Major Coverage B exclusions include:

• Knowing violation of another's rights / material published with knowledge of its falsity
• Material published before the policy period
• Criminal acts committed by or at the direction of the insured
• Breach of contract (except misappropriation of an advertising idea under a contract)
• Quality/performance of goods (failure to conform to advertised statements)
• Infringement of patent or trademark and offenses by insureds in the media/advertising business

Coverage B vs. Coverage A — the dividing line

Exam writers love to test whether a loss is physical (Coverage A) or intangible (Coverage B). A customer breaking a leg in the aisle is BI under Coverage A. A press release that defames a competitor, an ad that copies a rival's slogan, or a landlord wrongfully evicting a tenant are offenses under Coverage B. Because the trigger is the date the offense is committed, an ad published in 2026 that causes harm is a 2026 Coverage B matter even if suit follows later. Both coverages share the General Aggregate, so heavy Coverage B losses can reduce what is left for Coverage A claims.

Coverage C: Medical Payments

Coverage C pays reasonable medical expenses for bodily injury caused by an accident on the insured's premises or arising out of the insured's operations — regardless of fault ("no-fault" goodwill coverage). Because no legal liability is required, Coverage C settles small injuries quickly and can head off larger Coverage A lawsuits. Expenses must be incurred and reported within one year of the accident date, and the limit is per person (commonly $5,000).

Coverage C Limits, Time Rules, and Who Is Excluded

Key Coverage C facts (frequently tested):

Coverage C does not apply to the named insured, employees (covered by WC), tenants, or persons injured while taking part in athletics. If Coverage A applies to a claim, Medical Payments to that same person is excluded to avoid double payment.

Worked example — Coverage C vs. Coverage A

A customer trips on a loose mat in a retail store and incurs $3,800 in medical bills. The store wants goodwill and quick resolution.

• Under Coverage C, the insurer can pay the $3,800 (within the $5,000 per-person limit) without any finding of fault and without a lawsuit.
• If the customer later sues for negligence and pain/suffering, the claim shifts to Coverage A, where fault and legal liability are evaluated against the $1,000,000 Each Occurrence limit. Amounts already paid under Coverage C for that injury are not duplicated under Coverage A.