Defamation

A defamatory statement can fall into two categories: libel and slander. In a general sense, libel is written or published defamation. It also includes images. Slander is defamation that’s spoken.

However, something defamatory that’s broadcast on radio or television—while spoken—is usually considered libel. That’s because an element of libel is that it reaches a large audience and is more permanent, whereas slander is person-to-person speech, making it more fleeting and temporary.

Interestingly, social media is reshaping the legal landscape when it comes to defamation law. For example, TikTok and Instagram video posts could definitely be considered libel, since they’re published. However, depending on the type of format they take (like a livestream), they may fall into the slander category as well.

Certain business liability insurance policies can help you if you’re the defendant in a business defamation lawsuit.

General liability insurance: Your commercial general liability (CGL) policy protects you if you’re accused of defamation. It would fall under personal and advertising injuries. The policy would cover expenses such as legal fees, settlement or judgment costs, and court fees. A business owner’s policy (BOP) would offer the same type of coverage.

Professional liability insurance: Professional liability is also called errors and omissions (E&O) insurance. It’s designed for businesses that make a living off expertise. In the case of defamation, professional liability insurance would cover the risk for some professions with unique exposures to slander or libel, like lawyers and translators.

Media liability insurance: Media liability is a type of E&O coverage for media professionals. It can help cover legal costs if you're sued for libel or slander. Some policies include third-party cyber liability coverage, which protects businesses that publish digital content. It also applies to those in media and advertising, such as writers, influencers and YouTubers, podcasters, social media companies, bloggers, and publishers. Like a CGL, E&O can cover defamation-related legal expenses.

If someone makes false statements against your company, it can hurt your business in several different ways. The most widespread effect could be reputational harm, which could result in a loss of customers, a reluctance for partnerships, and a downturn in revenue. That’s why many people and companies take legal action and sue if someone defames them.

At the same time, if you’re the defendant in a libel or slander case, you want to make sure you have as much protection as possible to shield yourself from financial harm. Being accused of making false statements has negative repercussions on your company’s reputation, which could result in a loss of income.

You’ll also have legal costs—which could include settlements, actual damages, and punitive damages—and expenses related to public relations management or PR recovery efforts. Paying for business litigation is often overwhelming for a small business, so having the right insurance can be a key to your company’s bottom line, and maybe even its survival.

Determining the best way to protect yourself from business defamation claims is simple with Insureon. Start a quote by answering a few simple questions on our website. Then, one of our expert insurance agents will respond with a few options for you to compare. The policies will come from reputable U.S. insurance companies with affordable premiums.

After you’ve found a plan that fits your small business’s needs, your coverage can begin within 24 hours and you’ll have access to an online portal where you can find policy documents, including a certificate of insurance (COI).