Damaged Reputation Claim

November 5, 2012

 

This loss involved four full school buses. Our insured school bus rear-ended another school bus into another and then into another. There were no serious injuries, but it was newsworthy, prompting many paper and internet stories. All the child passengers were going from a sleep over summer camp to an amusement park for a day trip when the accident took place. The injured children were treated and released. It was not reported that any children cut their camp experience short due to the accident.

The owner of the camp is presenting a claim for loss of the camp's reputation as a safe camp or for a damaged reputation. No economic damages have been submitted. Is the claim for a damaged reputation property damage under the CA 00 01 auto policy? Is the loss of reputation considered personal and advertising injury under the CG 00 01? Would the auto exclusion in the CGL form apply since the news articles and negative publicity were a result of an auto accident?

New Jersey Subscriber

A claim for a loss of reputation is not bodily injury or property damage as defined in the BAP or the CGL form. Property damage is physical injury to tangible property and loss of use of tangible property. A reputation has nothing to do with tangible property.

 

As for personal and advertising injury, that term is also a defined term. It includes slander and libel, but there is no mention of reputation. The insured did not slander or libel the claimant by rear-ending a bus.

 

There is no basis for coverage for this type of claim under either the BAP or the CGL form since the insuring agreements on both policies have not been met. There is no need to consider any exclusions.

 

 

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis