What Does Libel Insurance Mean?
Libel insurance is insurance that protects against losses from lawsuits involving libel. Libel is when one party makes public remarks about another party that are false and that can significantly lower the party's reputation. Such lawsuits can commonly lead to lawsuits where one party sues another for damages, libel insurance is often included as a part of a commercial general liability policy.
Insuranceopedia Explains Libel Insurance
Losses from libel suits can be extensive. Without libel insurance, people and companies could be forced to shoulder this burden by themselves. However, libel insurance can protect parties from such losses. An example of a situation that may call for libel insurance to be used is if one company deliberately claims another company's products are flawed, and they are not. Such claims could cost a company significant sales losses and decreased reputation. A libel lawsuit may be filed to recoup some of these losses and to punish the party who made the claims.