Types of exposures advertisers can face
Claims Examples Advertisers Final
Claims examples may be based on actual cases, composites of actual cases or hypothetical claim scenarios and are provided for illustrative purposes only. Facts have been changed to protect the confidentiality of the parties. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law.
Libel
Misappropriation of Name/Likeness
Public Disclosure of Private Facts
Copyright Infringement
Errors and Omissions
Why AXIS Media Liability Insurance
An advertiser publishes an advertisement in which it presents various comparisons with the product of a competitor, declaring that its own product is demonstrably superior without providing data. The competitor sues, alleging trade libel as there is no data supporting the objective assertions made by the advertiser.
A company publishes an advertisement for its services. In that advertisement, it characterizes its services as “the best ever” and “way better than the other guy.” One of its competitors sues alleging trade libel as they believe their services are better.
A broadcaster boasts in an advertisement that it has more listeners than any other radio broadcaster in the area. A competing radio station sues alleging that the published ratings do not support the broadcaster’s claims.
An advertiser commissions a television advertising campaign, which the agency films using several actors. The actors duly sign the appropriate releases, but unbeknownst to the advertiser, the releases contain limitations about how long the advertisement can run. The advertiser posts the ad to the internet, where it remains available for viewing for far longer than that allowed by the releases. The actor’s sue for misappropriation of likeness.
An advertiser’s in-house marketing group puts together an ad which they intend to run on social media. The marketing department is largely composed of interns, and due to an error, an intern pulls a photograph from the internet and does not consider that the person appearing in the photo has a right of publicity and that a release is required. The intern posts the ad to the internet without running it by the legal department, and a claim ensues.
An advertiser learns from a friend of a local celebrity that the celebrity uses the company’s pharmaceutical supplement. The advertiser proudly proclaims that fact in an online advertisement. The local celebrity sues alleging that the fact that he took the supplement was private (and also sues for violation of his right of publicity).
An advertiser and its advertising agency use a jingle house to compose music for a forthcoming ad campaign. The advertiser believes that the sound of a certain rock band goes with its desired branding but does not have the budget to license the work. Accordingly, it directs the agency and, in turn, the jingle house, to compose music which evokes that band’s work. Three versions of the original composition are presented by the jingle house. Of the three, one of the versions most closely evoke the music of the band. Notwithstanding the advice of both the jingle house and the advertising agency that the campaign should use one of the versions which has less in common with the band’s work, the advertiser directs the agency to use the one that is closest. The band sues the advertiser for copyright infringement of its composition. As the advertiser took control over that creative aspect of the campaign, neither the jingle house nor the advertising agency owes the advertiser defense and indemnity.
An advertiser enters into an agreement to co-brand an advertising campaign with another company. The advertiser takes responsibility for leading up the campaign. As part of that agreement, the ads are supposed to tout both the companies’ upcoming sales events. The advertiser errs in stating the percentage discount of the co-branding company’s sale event, resulting in lower turnout for the sale. The co-branding company sues the advertiser for breach of contract and negligence.
All-Risk coverage agreement including Defamation, Invasion of Privacy or Publicity, Copyright/Trademark Infringement, Plagiarism, and Errors and Omissions
Primary or Excess coverage with capacity up to $20M
No “hammer” clausegoverning settlement
Occurrence policy form(claims made policy available)
Defense in addition to limit or Defense within limit policies
Worldwide territory
Damages include punitive or exemplary damages where allowed by law, most favorable venue language, and AXIS will not challenge the insurability of punitive damages
*Ratings of insurance and reinsurance subsidiaries of AXIS Capital Holdings Limited The information is intended for use by licensed insurance producers and is not an offer to sell, or a solicitation to buy, any insurance product for a particular insured. Policy terms, conditions or exclusions may vary. No insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation would be unlawful. Coverages are underwritten in the U.S. admitted market by AXIS Insurance Company (NAIC # 37273), a Chicago, Illinois property and casualty insurer licensed in all 50 states and the District of Columbia. Some products may be offered by AXIS companies not licensed in certain jurisdictions and therefore may be available only through licensed surplus lines brokers. More information about AXIS’ financial strength and individual insurance company ratings is available at https://www.axiscapital.com/who-we-are/financial-strength-ratings.
