Defamation Of Character

What Does Defamation Of Character Mean?

Defamation of character refers to a false written or spoken statement about a person that harms their reputation. It is an illegal offense and can lead to civil or criminal charges. In the context of insurance, damages may be owed to the party filing a defamation of character lawsuit. Consequently, individuals may seek insurance protection for libel, slander, and defamation of character.

Insuranceopedia Explains Defamation Of Character

Even though a single false statement may not seem like a serious offense, it can be quite damaging. For instance, if a businessman publicly claims in an interview that a rival CEO embezzled $30 million, it could have major consequences for the rival. The CEO may quickly start losing clients and business due to the damage to their reputation. In this case, the rival could sue the businessman for defamation. Coverage for such lawsuits may be included in a personal liability insurance policy, which protects against losses from situations like these.