In an often litigious society, some Americans must consider the possibility that someone at some point will sue them for something they do or say. While most people think about physical fights or assaults, personal injury also includes damages for defaming a person through libel or slander. 

The good news is that your homeowners' insurance can often help. Here's what you need to know about homeowners' policy protection against defamation lawsuits. 

What Is Defamation?

Defamation is an untrue statement designed to harm others' reputations. If it's a written statement, it's known as libel. Spoken defamatory statements are slander. The defamatory statement must pass a few qualifications, such as seen/heard by others (published), in order to qualify as legal defamation with the possibility of economic damages. Generally, the defamed person must sue to get damages. 

How Does Homeowners Insurance Help?

Because defamation is a form of personal injury, it is usually included as part of most homeowners' insurance liability policies. You can choose the type of defamation coverage you want, and you can even purchase additional coverage if your risk of defamation is higher than average (such as those in certain fields). 

Policy coverage for defamation usually takes one or both of two forms. The first is to cover your legal costs if you must defend yourself against charges of slander or libel. The second is to pay up to a certain limit of any financial damages if you lose. 

What Are the Limits of Coverage?

Of course, as with all homeowners insurance rules, each policy sets out its own stipulations and limits. One of the most common is that you aren't covered if you acted intentionally or with malice in making the defamatory statement. This may even be required by state law so as to avoid rewarding bad faith actions. 

If the insurance company is on the hook for your defense and/or damages, it will also be involved in things like the selection of legal counsel, negotiations, and the manner of defense. And if the carrier determines that the incident was not a covered incident, it can deny the claim even after the legal process starts. 

Where Can You Learn More?

Coverage for potential defamation claims is increasingly important. Not only do you make statements every day in person and on social media, but your minor children may also do the same thing. So everyone should understand what their home insurance covers and whether they need customized coverage.

Contact a local insurance company for more information.