Internet and Electronic Commerce Risks: Advertising Injury Insurance Coverage Provides Protection

Policyholder Advisor & Alert

PUBLISHED ON: November 1, 1998

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Cyberspace is expanding
rapidly as businesses,
organizations and individuals
transmit and receive
more and more information
over the Internet. But, as
already evidenced by numerous lawsuits commenced
nationwide, Cyberspace presents significant
risks for those communicating and transacting
business over the Internet. Insurance may
provide protection.
One very important source of potential protection
from Internet related claims is the advertising
injury coverage often sold under comprehensive
or commercial general liability (“CGL”) insurance
policies. CGL insurance policies frequently provide
insurance coverage for claims stemming from
the policyholder’s advertising activities, which
involve claims of “libel, slander, defamation, violation
of right of privacy, piracy, unfair competition,
or infringement of copyright, title or slogan.”