CGL Coverage B: Personal and Advertising Injury Guide

In the Commercial General Liability (CGL) policy, Coverage B provides protection for Personal and Advertising Injury. Unlike Coverage A, which focuses on tangible physical harm (Bodily Injury and Property Damage), Coverage B addresses intangible harms—reputational damage, legal rights violations, and intellectual property issues arising from business operations.

For candidates preparing for the practice General Liability questions, understanding the specific "offenses" that trigger Coverage B is essential. This coverage is distinct because it does not require a physical impact or accident; rather, it is triggered by specific actions taken by the insured that result in non-physical harm to a third party. To see how this fits into the broader policy structure, refer to our complete General Liability exam guide.

Coverage B does not provide a broad "catch-all" for every legal wrong. Instead, it defines specific offenses that constitute a personal and advertising injury. To be covered, the injury must arise out of one or more of the following:

• False Arrest, Detention, or Imprisonment: Unlawfully restraining an individual's freedom of movement.
• Malicious Prosecution: Initiating legal action without probable cause and with malicious intent.
• Wrongful Eviction or Entry: The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies, committed by or on behalf of its owner, landlord, or lessor.
• Libel and Slander: Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person's or organization's goods, products, or services.
• Invasion of Privacy: Oral or written publication of material that violates a person's right of privacy.
• Use of Another's Advertising Idea: Misappropriating a competitor's marketing or promotional concept in the insured's own advertisement.
• Copyright Infringement: Infringing upon another's copyright, trade dress, or slogan in the insured's advertisement.

Standard CGL forms include several critical exclusions for Coverage B that exam-takers must recognize. These exclusions prevent the policy from covering intentional misconduct or risks better suited for other insurance types.

• Knowing Violation of Rights: There is no coverage if the insured caused the injury while knowing that the act would violate the rights of another and would inflict personal and advertising injury.
• Knowing Falsity: Coverage is excluded for libel or slander if the insured published the material knowing it was false.
• Contractual Liability: Injury for which the insured has assumed liability in a contract is generally excluded, unless the insured would have been liable even without the contract.
• Breach of Contract: Liability arising out of a failure of goods, products, or services to conform with advertised quality or performance is excluded.
• Quality or Prices of Goods: Injuries arising out of the wrong description of the price of goods, products, or services are not covered.
• Media and Publishing Businesses: This is a major exam point. Businesses in the business of advertising, publishing, broadcasting, or telecasting are largely excluded from Coverage B because they require specialized Professional Liability or Media Liability insurance.