Insurance Information Institute research manager Maria Sassian brings us an insurance consideration for our next shop at the mall or online:
Insurers have to worry about everything, it seems. For example, the standard commercial general liability policy covers advertising injury. So what constitutes an advertisement?
How about the modest hang tag, the thing that dangles from a piece of clothing as it sits on display at the store? This from a discussion at Gen Re’s blog:
Some courts have broadly construed the definition of advertisement, and policyholders have successfully argued that product packaging and point of sale retail displays qualify as “advertisements.” In E.S.Y., Inc. v. Scottsdale Ins. Co., 139 F. Supp. 3d 1341, 1355 (S.D. Fla. 2015), a competitor sued the insured, alleging it sold clothes with infringing designs and labels on the clothes and its hang tags. The court held that a “hang tag” constituted an “advertisement” such that the insurer owed a duty to defend. The court reasoned that the “hang tag” was not part of the product itself, and “had the additional function of attracting consumers to the garments themselves and to the brand more generally.”