Georgia Adjuster Practice Test

Which coverage is applicable for damages caused by an error in the advertisement?

1. Property Damage Liability

2. Advertising Injury Coverage

3. Workers Compensation

4. Personal Liability Coverage

The correct answer is: Advertising Injury Coverage

The applicable coverage for damages caused by an error in the advertisement is Advertising Injury Coverage. This type of coverage is specifically designed to address claims arising from various forms of advertising-related injuries, which can include issues like false advertising, trademark infringement, and slander that may occur during the marketing of products or services. When a business makes a mistake in its advertising that leads to a legal claim, Advertising Injury Coverage provides the necessary financial protection, covering legal fees and damages that may result from such claims. This is distinct from other forms of liability coverage, which address different risks, such as physical damage to property or injuries sustained by employees. In contrast, Property Damage Liability focuses more on damages to physical property, while Workers Compensation is designed to cover employee injuries occurring on the job. Personal Liability Coverage pertains to personal injury claims, typically in a non-business context, and does not cover advertising-related issues. Thus, Advertising Injury Coverage is the most relevant and protective option for damages resulting from advertising errors.