20 Nov 2014

Every business, no matter the size, has the possibility of being sued. One type of lawsuit your business could face is a defamation lawsuit involving libel or slander—meaning false statements that cause a person to suffer in some way. Here is some helpful information to help you understand and protect yourself from this kind of lawsuit.

What are libel and slander?

Libel is a written false statement that causes harm in some way. Slander is a spoken false statement that causes a person to suffer. Both of these charges can have serious and often costly consequences.

How can you make a claim regarding defamation?

There are some criteria that have to be met to file a defamation claim:

  1. A statement, either spoken or written, has been made
  2. The statement is not true
  3. The statement caused injury or harm of some sort
  4. The defendant caused this injury or harm

How can you defend against charges of defamation?

There are a couple of ways you could prove the charges to be unjust:

  1. Show that the statement is, in fact, true
  2. Prove that the statement was an opinion based on facts

Protecting yourself with Liability Insurance

Liability insurance covers your legal expenses and often part of a settlement in defamation cases. To receive coverage in cases like these, you will need to prove that you acted inadvertently or unknowingly. If you knowingly spoke or wrote a false, damaging statement, your liability policy may not cover you.

Not every business has the same liability insurance needs. For instance, construction companies will have an overall higher liability risk than a retail company. Know what your business’ risk is to get the coverage you need to protect your business from any liability it might face.

Contact Patterson & Associates Insurance in Richardson for all of your Texas business insurance needs. Let them keep your business safe against slander and libel. Know your risks and get protected with a business insurance quote, today!