The cost of defending such lawsuits can be significant, which often factors into companies' decisions to settle cases. Many fashion and apparel companies do not know that those defense costs (and any ultimate damages) may be covered by an often overlooked form of insurance found in most comprehensive general liability policies, called "advertising injury."
Such coverage is often included in standard comprehensive general liability insurance policies. Depending on the particular policy language, advertising injury coverage applies to various types of alleged acts in connection with the policyholder's advertising of its products. Most standard advertising injury policy forms cover advertising injury arising out of libel, slander, defamation, violation of right of privacy and infringement of copyright title or slogan. Some older policy forms also cover advertising injury arising out of unfair competition and piracy, and some newer policy forms include misappropriation of advertising ideas or style of doing business.
