- Defamation and plagiarism appear to be covered under both Insuring Agreement 1 (Professional Services) and Insuring Agreement 2 (Multimedia Liability). What is the difference in cover between these two?
- Professional Services covers the insured against their liability to the customer for liability which the customer may incur as a result of the insured’s wrongdoing.
- Example: The insured is a PR company that develops a brochure for the bank. The brochure wrongfully claims that the bank’s competitors are dishonest. As a result the bank is sued for defamation. The bank in turn sues the PR company. That claim would fall under the Professional Services section of the insured’s policy.
- Multimedia Liability covers the insured against their liability to third parties.
- Example: The insured’s brochure wrongfully claims that its competitors are dishonest.