Georgia Property & Casualty Practice Exam

In a business owners policy, which liability exclusion denies coverage for knowingly publishing false material?

1. product recall

2. expected injury

3. professional liability

4. personal and advertising injury

The correct answer is: personal and advertising injury

The liability exclusion that denies coverage for knowingly publishing false material in a business owner’s policy is related to personal and advertising injury. This type of injury encompasses various offenses such as defamation, libel, and slander, which involve the dissemination of false information that can harm a person's reputation. The exclusion specifically applies to claims made when an entity is aware that the material published is false, thereby limiting coverage for intentional acts that can cause harm to others. Understanding this exclusion is crucial for businesses as it helps them identify risks associated with their advertising and public statements. In contrast, other exclusion categories, such as product recall, expected injury, and professional liability, address different types of risks not directly related to the intentional publication of false material. For instance, product recall pertains to issues related to defective products, expected injury covers foreseeable consequences of certain actions, and professional liability deals with negligence in professional services. Each of these exclusions serves to define the boundaries of coverage distinctively, emphasizing the importance of clarity in the scope of liability protection provided by business owners policies.