Slander

What Does Slander Mean?

Slander is a civil wrong that involves making false and damaging oral statements about someone to third parties, thereby harming their reputation. In simpler terms, it refers to the act of verbally tarnishing someone’s good name with malicious intent, which can serve as grounds for a lawsuit. Liability insurance is designed to protect individuals from this risk. Most business policies fold slander coverage into the personal and advertising injury portion of general liability insurance, which is one reason small business owners who deal with the public or speak about competitors often carry it.

Slander is also referred to as oral defamation.

Insuranceopedia Explains Slander

For a verbal statement to qualify as slander, it must be untruthful, harmful to the concerned person’s reputation, or injurious to them. Additionally, a third party must have heard the statement for a lawsuit to be valid. The victim must also demonstrate that the statement defamed their reputation and caused actual harm. Slander is considered a civil wrong only if it results in a loss of social, financial, or employment status.

The harm caused by slander is referred to as damages, which are categorized into two types: special damages and non-economic damages. Special damages are quantifiable losses that can be calculated precisely, while non-economic damages encompass suffering and pain caused by the defamation. Because defamation awards can run into six or seven figures in some cases, business owners worried about a verdict that exceeds their primary policy limits sometimes add commercial umbrella insurance on top of their general liability coverage.