Slander

Slander is a type of defamation. It's a statement of false information that damages someone's reputation, exposes them to public hatred and ridicule, or causes a loss of income.

It's not the same as offering a negative opinion. Declaring you don't like someone wouldn't be considered slander. However, falsely accusing someone of a crime would be considered slander and a defamation of character.

Opinions are usually protected under free speech laws, but problems can arise when opinions are presented as verified facts.

For example, saying “In my experience, I wouldn’t recommend working with that company” is generally safer than saying “That company is fraudulent” without proof. When speaking publicly—whether in meetings, interviews, or online—business owners should avoid making unverified factual claims about individuals or competitors.

Framing statements carefully can reduce the risk of defamation disputes and help protect your business from legal exposure.

Both libel and slander are forms of defamation. In legal terms, libel involves material that is published or displayed, which is then seen by a third party. Slander is a type of oral defamation that's said out loud to another person.

While the First Amendment forbids the government from punishing people for what they've said, the concept of freedom of speech doesn't protect you or your business from someone suing you with a defamation claim.

Most slander and libel suits fall under state jurisdiction, with state courts following the common law principles of defamation. It's an area of law that allows a defamation lawsuit without proof of actual harm, or damage to someone's good name. Under American laws, simply demonstrating that a statement was defaming could be enough to prove a case.

Winning special damages is a different story. In the landmark 1964 case New York Times Co. v. Sullivan, the U.S. Supreme Court ruled that the First Amendment limits someone's ability to claim damages in matters of public concern. The court said a claimant would have to prove that someone acted with "actual malice" by publishing false statements about public officials.

General liability insurance covers common business risks, such as third-party bodily injuries and property damage, as well as advertising injuries. If someone sues your business for libel or slander, the defamation insurance included in this policy would help pay your legal defense costs.

General liability coverage is often the first policy small business owners buy. Commercial landlords, clients, or lenders might require you to carry this coverage. A general liability policy is strongly recommended if you have any public interaction, from operating a storefront to advertising on social media.

Even if a slander claim is unfounded, defending your business can be extremely costly. Attorney fees, court costs, and expert witnesses can add up quickly, sometimes costing more than a settlement itself.

Having the right insurance coverage can help ensure these expenses don’t come out of your business’s cash flow, allowing you to focus on running your company instead of managing unexpected legal bills.

It's easy to get free quotes from top-rated insurance providers by filling out our easy online application. You can also speak with a licensed insurance agent if you have questions about the types of coverage you need.

Once you find the right policies, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.