“5th Circ. Ruling Could Widen Ad Injury Coverage”
The Fifth Circuit’s coming decision in Mid-Continent Casualty Co.’s appeal of a ruling that it must cover “advertising injury” damages in an intellectual property suit against a homebuilder could give policyholders ammunition to argue for a broader interpretation of what constitutes an advertisement under commercial general liability policies, experts say.
“If the court found the product could be the advertisement, that holding could shade over and call into question what the insurance industry has considered fairly established law that a product can’t be an advertisement,” said David White, an attorney in Thompson & Knight LLP’s Dallas office. “That could give the industry a cause for some worry.”