Personal and Advertising Injury

Overview

Personal and Advertising Injury is a distinct coverage section within a Commercial General Liability (CGL) policy that addresses non-physical harm — torts that injure a person's reputation, privacy, or rights rather than their body or property. This coverage is listed separately from bodily injury and property damage on the ACORD 25 certificate and has its own limit, typically equal to the Each Occurrence Limit.

How It Works

Under the standard ISO CGL form, Personal and Advertising Injury encompasses a specific list of offenses:

Personal Injury offenses include:

• False arrest, detention, or imprisonment
• Malicious prosecution
• Wrongful eviction or wrongful entry into a person's room, dwelling, or premises
• Oral or written publication of material that slanders or libels a person or organization
• Oral or written publication of material that violates a person's right of privacy

Advertising Injury offenses include:

• Oral or written publication of material that slanders or libels a person or organization's goods, products, or services
• Use of another's advertising idea in your advertisement
• Infringement upon another's copyright, trade dress, or slogan in your advertisement

Coverage is triggered on an offense basis rather than an occurrence basis. The policy responds when the insured commits one of the listed offenses in the course of their operations and a claim results. The insurer provides both defense and indemnity, similar to bodily injury and property damage coverage.

Compliance Relevance

Personal and Advertising Injury coverage appears on virtually every CGL certificate but receives less compliance attention than bodily injury and property damage limits. However, it has important implications:

• Wrongful eviction: For property managers and landlords, the wrongful eviction coverage is particularly relevant. If a tenant alleges they were unlawfully removed, the CGL policy's Personal Injury coverage responds.
• Limit verification: The Personal and Advertising Injury limit on the ACORD 25 should match the Each Occurrence Limit. If it is lower or absent, this may indicate a policy endorsement restricting coverage.
• Exclusion awareness: Many CGL policies contain endorsements that exclude specific Personal and Advertising Injury offenses — particularly intellectual property claims or employment-related practices.
• Contractual requirements: Some contracts specifically require Personal and Advertising Injury coverage, especially in marketing, media, or technology vendor agreements.

Example

A property management company sends a mass email to tenants that accidentally includes defamatory statements about a competing management firm, alleging financial misconduct. The competing firm sues for libel. The property management company's CGL policy responds under the Personal and Advertising Injury coverage because the claim involves written publication of material that slanders an organization. The insurer provides defense counsel and covers any settlement or judgment up to the policy limit.