Slander and Libel Coverage

Example

“The blogger was grateful for her slander and libel coverage when a restaurant owner sued her for $50,000 over a negative review claiming the kitchen was unsanitary.”

Memory Tip

Remember 'Slander is Spoken, Libel is Listed (written)' - both can get you sued, and both need coverage.

Why It Matters

In today's social media age, anyone can accidentally make statements that result in defamation lawsuits, which can cost tens of thousands in legal fees alone. This coverage protects individuals and businesses from the financial devastation that can result from defamation claims, even when the statements were made unintentionally.

Common Misconception

Many people think this coverage only applies to journalists or public figures, but ordinary individuals can face defamation lawsuits for social media posts, online reviews, or casual conversations. Some also believe that telling the truth provides absolute protection, but even true statements can sometimes result in lawsuits that require expensive legal defense.

In Practice

Tom posts on Facebook that his former employer 'steals from customers,' intending to criticize their high prices. His ex-boss sues for $75,000, claiming the post damaged the business's reputation and implied criminal activity. Tom's homeowner's policy includes $100,000 in personal liability coverage with slander and libel protection. The insurance company provides a lawyer costing $25,000 and settles the case for $15,000. Tom pays only his $1,000 deductible while his insurance covers the remaining $39,000 in legal and settlement costs.

Etymology

Slander comes from Old French 'esclandre' meaning scandal, while libel derives from Latin 'libellus' meaning little book or written statement. Both terms entered legal usage in medieval times as defamation law developed.

Common Misspellings

Related Terms

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