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One benefit of having umbrella insurance, besides potentially extending the policy limits for other insurance you have, is that it may offer protection for claims against you of defamation, libel, and slander.
Understanding the Legal Terms
If you are not familiar with these legal terms, here are some brief explanations of them. Ask your agent at T.D. McNeil Insurance Services in Folsom, CA, to give you more details and discuss hypothetical examples.
What is defamation?
Defamation is publicly making a false claim (about a person or organization) and presenting it as a fact.
Libel and slander are different types of defamation.
What is libel?
Libel is defamation in print or digital text, such as publication in a newspaper or on social media.
What is slander?
Slander is defamation by voice, such as speaking on a podcast or giving a public speech.
Opinions Don’t Count, and Truth is an Absolute Defense
It also helps to understand what defamation is not. Having an opinion about something is not defamation.
For example, a restaurant reviewer who publishes a review saying the food is bad is allowed to have that opinion. Publishing a review that claims the food contains poison, which is not true, is crossing the line into defamation. However, if the food actually contains poison and the statement is true, this circumstance does not support a claim of defamation.
It’s Better to Have Protection of Umbrella Insurance
As a business owner, it is better to have umbrella insurance to have some protection against defamation claims. One reason is you may be held responsible for the actions taken and things said by your employees.
Claims for defamation may be for substantial amounts. Work with your agent to understand the details of your coverage.
Reach out to us at T.D. McNeil Insurance Services in Folsom, CA. We can help with all your umbrella and other insurance needs.
