Beyond Bodily Injury: Understanding Personal Injury (Libel & Slander) Coverage

When we talk about liability insurance, the mental image is almost always physical: a guest slipping on an icy step, a dog biting a neighbor, or a tree falling on someone's car. This is "Bodily Injury" and "Property Damage" liability, and it is the foundation of every homeowners policy.

But in the digital age, the way we can harm others—and be sued for it—has changed. You are far more likely to get into a heated argument on social media or leave a scathing review of a local business than you are to accidentally knock someone down the stairs. If that social media post goes viral and damages someone's reputation, you could face a lawsuit for defamation, libel, or slander.

Here is the scary part: A standard unendorsed homeowners policy often DOES NOT cover these claims.

This gap in coverage leaves millions of homeowners vulnerable to expensive lawsuits arising from their words, not their actions. To fill this gap, you need a specific coverage known as Personal Injury Liability. This guide breaks down what it is, why the terminology is confusing, and why it is a critical addition for anyone who uses the internet.

The Confusing Terminology: Bodily vs. Personal

In standard English, "personal injury" sounds like getting hurt physically. In insurance legalese, they mean very different things:

1. Bodily Injury: Physical harm to a person's body (broken bones, cuts, sickness). Included in standard policies.
2. Personal Injury: Harm to a person's rights, reputation, or mental state. Often excluded or requires an endorsement.

What Does "Personal Injury" Cover?

This coverage protects you against a specific list of offenses that are not physical in nature:

• Libel and Slander: This is the big one. Libel is written defamation (tweets, blog posts, reviews). Slander is spoken defamation. If you write a negative review of a contractor alleging they are a thief, and they sue you for damaging their business, this coverage pays for your defense attorney and any judgment against you.
• Invasion of Privacy: If you accidentally film a neighbor in a private moment with your security camera or drone and publish it.
• False Arrest, Detention, or Imprisonment: If you wrongly detain someone you suspect of shoplifting or trespassing.
• Wrongful Eviction: If you are a landlord (and the policy covers your rental activity), this protects you if you mess up the eviction process.

The "Intentional Act" Caveat

Like all insurance, Personal Injury coverage excludes intentional harm. If you knowingly lie about someone to destroy their reputation, the insurer can deny the claim. However, the line is often blurry. You might have thought your tweet was "opinion" or "truth," but the court disagrees. In that gray area, the insurer's duty to defend you is invaluable. The legal fees alone to defend a defamation suit can cost $20,000 to $50,000, even if you win.

How to Get This Coverage

Because it is not always standard, you have to look for it.

1. Check Your Policy: Look at the "Definitions" section or the endorsements list. If you don't see "Personal Injury" explicitly listed, assume you don't have it.
2. Add the Endorsement: Most insurers allow you to add this coverage to your homeowners policy for a very low cost—often $15 to $20 per year. It is one of the cheapest and most effective upgrades you can buy.
3. Get an Umbrella Policy: As we discuss in our Umbrella Insurance guide, almost all umbrella policies include Personal Injury coverage as a standard feature. In fact, an umbrella policy is often the best way to get this protection because it offers high limits ($1 million+) which is necessary for defamation cases where damages can be high.

Conclusion

In a world where everyone is a publisher and "cancel culture" can lead to litigation, your liability risk has moved from your front porch to your smartphone. Don't assume your standard policy protects your speech. For the price of a takeout lunch, you can add Personal Injury coverage and ensure that a bad day on the internet doesn't cost you your life savings.