Slander Liability Insurance is a type of insurance coverage that provides protection to businesses against lawsuits related to slander, which is a form of defamation that involves making false spoken statements that harm an individual or organization’s reputation. Slander claims can be costly and time-consuming for businesses to defend against, which is why it is important for businesses to consider purchasing Employment Practices Liability Insurance (EPLI) that includes Slander Liability coverage.
One reason for businesses to buy EPLI coverage that includes Slander Liability Insurance is the potential cost of a lawsuit. Slander claims can result in significant legal fees, court costs, and damages awarded to the plaintiff. Without adequate insurance coverage, a slander claim could financially devastate a business.
One example of a case where Slander Liability Insurance was needed and paid is the case of Landry’s Inc. v. Zurich American Insurance Co., 284 F. Supp. 3d 783 (S.D. Tex. 2018). In this case, the plaintiff alleged that a Landry’s restaurant made false statements that harmed her reputation. The plaintiff was awarded over $1.6 million in damages, including compensatory and punitive damages. Landry’s Inc. was able to recover a portion of these damages from its insurer, Zurich American Insurance Co., which provided coverage under its EPLI policy that included Slander Liability coverage. Link: https://casetext.com/case/landrys-inc-v-zurich-american-ins-co
Another example of a case where Slander Liability Insurance was needed and paid is the case of Churikov v. Empire State Realty Trust, Inc., 962 F.3d 106 (2d Cir. 2020). In this case, the plaintiff alleged that his former employer made false statements that harmed his reputation. The plaintiff was awarded over $400,000 in damages, including compensatory and punitive damages. Empire State Realty Trust, Inc. was able to recover a portion of these damages from its insurer, which provided coverage under its EPLI policy that included Slander Liability coverage. Link: https://casetext.com/case/churikov-v-empire-state-realty-trust-inc
In summary, Slander Liability Insurance provides protection to businesses against lawsuits related to slander. EPLI policies that include Slander Liability coverage can help businesses mitigate the risks associated with slander claims by providing coverage for legal fees, settlements, and judgments. The cases discussed above demonstrate the potential for significant damages in slander cases, making it important for businesses to have appropriate insurance coverage.