Libel Insurance
What Does Libel Insurance Mean?
Libel insurance provides protection against financial losses arising from lawsuits related to libel. Libel occurs when one party makes false public statements about another, causing significant harm to their reputation. These cases often result in lawsuits where the affected party seeks damages. Libel insurance is commonly included as part of a commercial general liability policy.
Insuranceopedia Explains Libel Insurance
Losses from libel suits can be substantial. Without libel insurance, individuals and companies may have to bear these financial burdens on their own. Libel insurance offers protection against such losses. For example, if one company falsely claims that another company’s products are defective, it could result in significant sales losses and reputational damage for the affected company. In such a scenario, a libel lawsuit might be filed to recover some of these losses and hold the offending party accountable.
