What Is Personal Offense Coverage in Insurance?

Personal offense coverage in an insurance policy addresses specific types of non-physical harm that can arise from an individual’s actions. This coverage aims to protect the insured from financial liabilities stemming from claims that do not involve physical injury or property damage. Its primary purpose is to provide a defense and pay damages for certain personal rights violations, ensuring that individuals are not left vulnerable to significant legal costs. The protection offered by this coverage extends to various claims that can impact a person’s reputation or freedom.

Understanding Personal Offense Coverage

Personal offense coverage protects individuals against claims arising from specific non-physical acts. These covered incidents include libel, defamation through written or published statements. Slander involves defamation through spoken words. Both libel and slander can lead to significant reputational harm, prompting legal action.

The coverage extends to claims of false arrest, detention, or imprisonment, involving unlawful restraint or holding. Malicious prosecution is another included offense, occurring when someone initiates baseless legal action. Personal offense coverage can also address wrongful eviction or entry, which is unlawful interference with property occupancy.

Violations of privacy, such as wrongful invasion of privacy or public disclosure of private facts, are covered. These offenses inflict emotional distress, reputational damage, or loss of personal freedom. Personal offense coverage addresses legal liabilities related to these intangible personal rights, distinct from bodily injury or property damage.

Common Exclusions

Personal offense coverage has several exclusions. Intentional acts committed by the insured with the specific purpose of causing harm are not covered. For example, if an individual knowingly and deliberately slanders someone, the insurance policy would not provide coverage.

Liabilities arising from business, professional, or commercial activities are excluded from personal insurance policies. For instance, defamation or false advertising claims from a professional endeavor are not covered under a personal homeowners or renters policy. These risks are addressed by business-specific insurance, such as a commercial general liability policy. Claims stemming from criminal acts committed by the insured are also excluded.

Personal offense coverage excludes liabilities assumed under a contract. This means if an individual contractually agrees to certain liabilities, they are not covered. Liabilities arising from employment practices, such as wrongful termination or discrimination claims, are also excluded from personal policies. These claims fall under employment practices liability insurance (EPLI). Finally, if the insured knew a statement was false when made, any resulting claim is excluded.

Policies Including Personal Offense Coverage

Personal offense coverage is found within the personal liability section of standard homeowners and renters insurance policies. This provides protection against the non-physical harms discussed. Limits vary, but these policies offer defense and indemnification for covered claims in an individual’s personal life. Coverage ranges from $100,000 to $500,000, depending on the policy and insurer.

Umbrella insurance policies expand the scope and limits of personal offense coverage. These policies provide additional excess liability protection beyond the limits of underlying homeowners, renters, or auto insurance policies. An umbrella policy can offer millions of dollars in additional liability coverage, valuable for severe claims exceeding primary policy limits. Umbrella policies offer comprehensive financial protection against large legal judgments.

Businesses also secure similar protection through their commercial general liability (CGL) policies, including “personal and advertising injury” coverage. This business coverage addresses risks like libel, slander, and copyright infringement in a commercial context. Business policies differ from personal insurance offerings. Policyholders should review their individual policy documents to confirm coverage details, as terms vary among providers and policy types.

Citations

Commercial General Liability Coverage Form, ISO Form CG 00 01.
Homeowners Policy, ISO Form HO 00 03.
Umbrella Policy.