Let’s say that you run a successful restaurant. Advertising is a key part of this business, and you use it as part of the competitive market in your area.
But, what if you put out an ad implying that one of your competitors serves contaminated food? This might lead that competitor to lose business. They might blame your advertisement for the damage. The harmed third party may even decide to sue your restaurant for the advertising injury.
Should you face a lawsuit or have to compensate a third party for an advertising injury, you may be able to use your business insurance. One type of insurance that may help fight such claims is commercial umbrella coverage.
What is Commercial Umbrella Coverage?
Commercial umbrella coverage helps expand the limits of the standard general liability policy. For example, an advertising lawsuit might claim $300,000 in damage. However, your commercial insurance may only contain $100,000 in maximum liability coverage. Without umbrella coverage, the liable party may have to pay $200,000 in extra costs.
This is where umbrella coverage can help. It might help customers minimize losses if a liability claim exceeds standard policy limits. Furthermore, umbrella coverage may extend coverage to certain damages otherwise excluded from a standard liability policy.
How Commercial Umbrella Coverage Can Help After Advertising Injuries
An advertising injury might include libel, slander, copyright infringement, invasion of privacy or other acts that harm the reputation or assets of a third party. Every time you use advertising, your actions could harm someone else or their business. All businesses have a right to fair competition. If your advertising harms someone else, they might take action against you.
Businesses should make sure they have adequate advertising liability coverage in the event that an advertising claim arises. Sometimes, standard commercial liability policies do not cover advertising injuries. This is where commercial umbrella insurance might help. A business could invest in umbrella coverage to better protect their business from advertising injuries.
Furthermore, advertising injury lawsuits may run into the millions of dollars. Extending your limits may help you avoid excessive losses due to legal costs. This increases the chances that your business will be able to continue operations with relatively little impact.
The best way to avoid advertising injury claims is to use ethical advertising. Many businesses use professional advertising and public relations representatives to develop their campaigns. Never try to start an advertising campaign without familiarizing yourself with ethical practices.
Do you need Los Angeles commercial umbrella coverage? Let us help. Call Mitchell & Mitchell Insurance Agency, Inc. at (888) 512-8878 for a fast, free policy quote.