Advertising Injury
Commercial General Liability (CGL) insurance policies typically include a distinct coverage part for advertising injury caused by an offense committed both during the policy period and in the course of advertising the insured’s goods or services.
Lawsuits asserting violations of intellectual property rights are increasing being tendered to insurance companies for defense and indemnification under the advertising injury provision of a CGL. In at least two cases, Jordache Enterprises v. Brobeck, Phleger & Harrison and Darby & Darby v. VSI Int’l., a law firm’s failure to tender an intellectual property case to an insurance carrier has been alleged to be legal malpractice.
Whether coverage exists for infringement of intellectual property rights depends on the law governing the insurance contract. This is an evolving area of the law, and different courts have reached different conclusions regarding coverage.