Advertisers Liability Insurance

Definition - What does Advertisers Liability Insurance mean?

Advertisers liability insurance is a type of insurance coverage that protects advertising companies in the the event that they are sued for slander, defamation of character, libel, copyright infringement, or a number of other offenses. Advertisers liability insurance will cover these liabilities up to a certain amount. If losses are greater than the policy limit, then the policyholders will have to shoulder the costs.

Insuranceopedia explains Advertisers Liability Insurance

Advertising companies often purchase advertisers liability insurance because they run many ads, and there is always the chance that an ad can result in a lawsuit. This can happen if a false claim is made or if another company feels that the ad has infringed upon a copyright, etc. Whatever the case may be, advertisements sometimes result in lawsuits. Advertisers liability insurance is simply a way for advertising companies to hedge their risk of losses from lawsuits against them.

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