Beware of Changes in Liability Policies
I have noticed that there has been a few insurers that have been altering their exclusions under Liability and/or the Liability Section in their Business Pack policies.
The change is in the Defamation, Libel and Slander exclusion. One of the ones that has changed reads:
in respect of the Cover provided under Section –
Public and Products Liability:
the publication or utterance of a libellous, slanderous or defamatory remark:
a. made prior to the Period of Cover;
b. made by You or at Your direction and/or with knowledge of its falsity; or
c. related to advertising, broadcasting, publishing, telecasting activities or on-line social media activities conducted by You or on Your behalf.
When I draft a wording I change a lot of because the intention of Insurers is to exclude liability under sub-clause (c) where advertising and the like is the core business or profession of the insured.
If it is an ancillary part of an Insured’s business and they are not conducting these activities as a separate business, then it is a risk requiring cover the same as with any material put up on their website which may have a false comparison of somebody else’s product by mistake.
I feel it is too harsh to exclude advertising liability at one fell swoop from all clients. It would be so much better if it were removed by endorsement for certain industries using the occupation codes.
Regrettably, I am seeing more and more of this sort of thing happening. I recently wrote about the Hot Works Exclusion as another example.