Does Personal Umbrella Insurance Cover Defamation and Libel?

In today’s digital age, where a single social media post or online review can spark legal action, personal umbrella insurance has become an increasingly valuable safeguard. One of its lesser-known but crucial benefits is coverage for defamation, including libel (written defamation) and slander (spoken defamation).

Personal Umbrella Insurance Coverage

Most personal umbrella policies include what’s known as personal injury coverage. In insurance terms, this can extend beyond physical harm to include reputational damage caused by libel, slander or other forms of defamation. This means if you’re sued for making a statement—online or offline—that allegedly harms someone’s reputation, your umbrella policy can help cover legal defense costs, court fees and any settlements or judgments against you.

For example, if you post a negative review about a business and the owner sues you for defamation, your umbrella insurance could step in once your homeowners or renters insurance liability limits are exhausted. This coverage is especially relevant in an era where online expression is common and legal boundaries are sometimes unclear.

However, it’s important to note that umbrella insurance is a supplemental policy. To qualify, you typically need to carry a minimum amount of liability coverage on your underlying policies—such as $300,000 on homeowners insurance or $250,000 on auto insurance.

While umbrella insurance offers broad protection, it doesn’t cover everything. Intentional acts of defamation or those committed as part of a business activity may be excluded. Always review your policy details or consult with your insurance provider to understand the scope of your coverage.

Learn More

For personal umbrella insurance near you, contact Atwood Agency (DBA ISU Insurance Services).

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.