Which statement best describes the scope of Coverage B (Personal and Advertising Injury) in a CGL policy?

Which statement best describes the scope of Coverage B (Personal and Advertising Injury) in a CGL policy?

• A. Bodily injury
• B. Offense arising out of the named insured's business
• C. Property damage
• D. Auto liability

Answer: (B)

Coverage B covers personal and advertising injury, which means offenses that injure someone’s reputation or rights and are connected to the insured’s business activities or advertising. The important point is that the loss has to arise from the insured’s business operations, not from physical harm or property damage. So, offenses like libel, slander, false arrest, invasion of privacy, or misrepresentation in the context of advertising are potential covered risks if they occur in connection with the named insured’s business. This distinguishes Coverage B from Coverage A, which handles bodily injury and property damage, and from auto liability, which is a separate exposure. An example helps: a defamatory statement made in the insured’s advertising would fall under Coverage B, whereas a customer who slips and is injured in a store is covered under Coverage A or other lines, not Coverage B.

Coverage B covers personal and advertising injury, which means offenses that injure someone’s reputation or rights and are connected to the insured’s business activities or advertising. The important point is that the loss has to arise from the insured’s business operations, not from physical harm or property damage. So, offenses like libel, slander, false arrest, invasion of privacy, or misrepresentation in the context of advertising are potential covered risks if they occur in connection with the named insured’s business. This distinguishes Coverage B from Coverage A, which handles bodily injury and property damage, and from auto liability, which is a separate exposure. An example helps: a defamatory statement made in the insured’s advertising would fall under Coverage B, whereas a customer who slips and is injured in a store is covered under Coverage A or other lines, not Coverage B.