Insurance
Jan. 12, 2013
Courts muddle scope of disparagement coverage
Can mere conduct that reflects poorly on a claimant trigger "disparagement" coverage? Until recently, the law seemed clear that only a false and injurious statement can trigger such coverage. By Rachel Hobbs
Can mere conduct that is alleged to reflect poorly on a claimant or its product trigger trade libel or "disparagement" coverage? The law seemed clear that only a false and injurious statement can trigger disparagement coverage. However, some recent decisions suggest that an insured's conduct alone can trigger disparagement coverage if such conduct allegedly hurts the claimant's reputation.
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