10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments
Key Takeaways
- Coverage B covers personal and advertising injury from seven listed offenses (false arrest, malicious prosecution, wrongful eviction/entry, libel/slander/disparagement, invasion of privacy, use of another's advertising idea, and infringement of copyright/trade dress/slogan); the trigger is commission of an offense, not an accidental occurrence.
- Coverage B excludes patent and trademark infringement, but copyright, trade dress, and slogan infringement in an advertisement ARE covered.
- Coverage C Medical Payments pays reasonable medical expenses regardless of fault for bodily injury by accident on the insured's premises or operations, up to the per-person Medical Expense Limit (commonly $5,000).
- Coverage C medical expenses must be incurred and reported within one year of the accident, and exclude any insured, employees (workers comp), tenants, products-completed operations, and athletic participants.
- Med Pay paid under Coverage C is typically credited if the claimant later sues and recovers under Coverage A; the three coverages differ on fault: A requires fault, B is offense-based, and C requires no fault (goodwill).
Coverage B: Personal and Advertising Injury Liability
While Coverage A responds to physical BI and PD, Coverage B of the ISO CG 00 01 covers personal and advertising injury — a group of intentional, non-physical offenses that nonetheless are insurable. This is one of the highest-yield CGL distinctions on the exam because students confuse it with bodily injury.
The insuring agreement pays sums the insured is legally obligated to pay as damages because of personal and advertising injury caused by an offense arising out of the insured's business, and includes a duty to defend. Unlike Coverage A, the trigger is the commission of a listed offense during the policy period — not an accidental occurrence.
The Seven Listed Offenses
"Personal and advertising injury" means injury, including consequential bodily injury, arising out of one or more of these offenses:
- False arrest, detention, or imprisonment
- Malicious prosecution
- Wrongful eviction, wrongful entry, or invasion of the right of private occupancy of a room or premises a person occupies (by or on behalf of the owner/landlord)
- Oral or written publication of material that slanders or libels a person or organization or disparages their goods/products/services
- Oral or written publication of material that violates a person's right of privacy
- The use of another's advertising idea in the insured's advertisement
- Infringing upon another's copyright, trade dress, or slogan in the insured's advertisement
Key Coverage B Exclusions
Coverage B excludes, among others:
- Knowing violation of rights — injury caused by the insured with knowledge it would inflict the harm.
- Material published with knowledge of falsity.
- Breach of contract (except a misappropriation of advertising idea under an implied contract).
- Quality or performance of goods (failure to conform to statements).
- Infringement of patent or trademark — note: patent and trademark are NOT covered, but copyright, trade dress, and slogan ARE.
Trap: Trademark and patent infringement are excluded; copyright, trade dress, and slogan infringement in an advertisement are covered. Students who mark all intellectual-property claims as covered (or all as excluded) miss this.
Coverage C: Medical Payments
Coverage C pays reasonable medical expenses for bodily injury caused by an accident on premises the insured owns or rents, on ways next to those premises, or because of the insured's operations. It is goodwill / no-fault coverage: the insurer pays regardless of fault and without the injured party having to sue.
Medical expenses must be incurred and reported within one year of the date of the accident, and include first aid, medical/surgical/dental, X-ray, ambulance, hospital, professional nursing, and funeral expenses. The limit is the Medical Expense Limit shown per person (commonly $5,000).
Coverage C Exclusions and Interplay
Medical Payments does NOT apply to:
- Any insured (other than a volunteer worker in some cases)
- A person hired to do work for the insured
- A person injured on a part of the premises normally occupied by employees / tenants
- Injury covered by workers compensation
- Injury arising out of products-completed operations
- Athletic activities the injured person takes part in
The practical exam point: Coverage C pays small medical bills quickly and without fault, which can prevent a minor injury from escalating into a Coverage A liability lawsuit. If a claimant later sues and recovers under Coverage A, the Med Pay already paid is typically credited.
Worked Example: Coverage A vs. C vs. B
A customer slips on a wet floor in a retail store, breaking a wrist. The store's CGL has a $1,000,000 Each Occurrence Limit and a $5,000 Medical Expense (per person) Limit.
- Immediate ER and follow-up care total $4,200 within the year — paid under Coverage C with no need to prove fault. Remaining Med Pay this person: $5,000 - $4,200 = $800.
- The customer then sues, alleging negligence, and is awarded $60,000 — this is a Coverage A bodily injury claim. The insurer credits the prior Med Pay; net additional payment is $60,000 - $4,200 = $55,800.
- If instead the store had falsely told a competitor the customer was a shoplifter (slander), that would be a Coverage B personal injury offense, not Coverage A or C.
Which of the following is a covered offense under CGL Coverage B - Personal and Advertising Injury?
A store visitor is injured in an accident on the premises. Under CGL Coverage C - Medical Payments, what is a key feature of how the claim is handled?
Coverage C No-Fault Med Pay Limits and Time Limits
CGL Coverage C – Medical Payments pays reasonable medical expenses, regardless of fault, for bodily injury to others caused by an accident on premises the insured owns/rents or arising from the insured's operations. Expenses must be incurred and reported within a stated window (commonly one year of the accident), and the typical sublimit is $5,000–$10,000 per person.
| Coverage | Trigger | Fault required? |
|---|---|---|
| A – BI/PD liability | Legal liability for BI/PD | Yes |
| B – Personal/advertising injury | A named offense | Generally no negligence; offense-based |
| C – Medical payments | Injury on premises/operations | No (goodwill) |
Med Pay is goodwill coverage to settle minor injuries quickly and head off larger Coverage A suits. Trap: Coverage C excludes injuries to the insured, employees (workers comp), tenants, and anyone injured by the insured's products off-premises (products-completed operations is a Coverage A matter).
A store customer is hurt by a falling display and incurs $1,200 in medical bills; the store may not have been negligent. Which CGL coverage pays promptly without proving fault?