A customer confronts you. He claims false advertising. What do you do? In some cases, you may need to provide the customer with the product promised. In others, this may seem impossible to do. General liability insurance may offer some protection for you. If you are like many business owners, you do not set out to be misleading. Yet, situations can arise that lead to concerns. Here’s what coverage you may have to help you out.
What Should You Do?
If you have any situation like this, ask your customer to describe the problem. Gather their information. Ask the customer to allow you to give them a call back to discuss the problem after you have had time to gather more information. Then contact your insurance agent, and your lawyer, if necessary. If you are facing a large-scale problem with advertising errors, it’s important never to admit guilt. Instead, allow your agent to help you.
When Do You Have Coverage?
Some general liability insurance policies include advertising error protection.
Generally, this coverage applies in situations where you are facing an advertising injury lawsuit. If someone brings a claim to you of false advertising, for example, coverage may provide financial support to you as you fight or play that claim. It can also usually cover claims related to trademark infringement, copyright infringement, and other forms of misleading or inaccurate information. Your agent can help determine what the claim details are and if it falls under a coverage you have.
If it is available to you in this situation, your insurance company is going to go to work for you to help. They will discuss concerns with you across the board. This includes helping you manage the claim. Coverage can also help defend you in a court of law. Attorney fees and court costs may be a component of this. If you have to pay a settlement to the person with the claim, or the court orders a judgment in the matter, your policy can help cover those losses.
Keep in mind that every policy has limits. Your general liability insurance limit is set up front, and you should know what it is. If your legal costs are more than this, though, it may become necessary to pay for these costs out-of-pocket. However, you might be able to use a commercial umbrella liability policy to your benefit in these cases.
Advertising lawsuits like this are important to avoid because they can be very expensive. Work with your Bakersfield insurance agent to make sure you have ample protection in place to minimize these claim losses.