Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Coverage for Communications Costs

By Marialuisa S. Gallozzi and Seth A. Tucker
August 02, 2014

Seasoned lawyers and communications professionals know that strategic public communications can play a key role in helping to minimize potential liability. In complex litigation, public perceptions of the parties and the facts can have a significant effect on the ultimate size of the defendant's liability. For example, an early and compelling public recitation of facts favorable to the defense may dissuade some potential plaintiffs from joining the litigation. Similarly, in cases in which a government agency must approve a proposed settlement, public support for the settlement can help resolve the case. These examples of a multifaceted defense effort represent just a few of the circumstances in which public communications can serve as an important adjunct to the legal case being litigated in court.

When faced with potential liability, policyholders look to their insurance coverage to cover the costs of their defense, which might include public relations or crisis communications costs. Despite the usefulness of public relations in managing a potential liability and the absence of policy language specifically excluding such costs, insurers often take the position that communications costs are not included within the scope of defense costs covered under a standard-form general liability policy. Insureds facing such a denial may choose to push back, relying on analogous case law to argue that such costs should be covered. Insurers also have seen the market opportunity created for them by strategic communications and are increasingly offering “crisis management” coverage for companies concerned about mitigating interrelated public relations crises and liability risks under certain types of coverage, such as management liability, product contamination and cyber liability policies.

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.