Unsolicited Fax Outside CGL Policy's Advertising Injury Coverage

Auto-Owners Ins. Co. v. Websolv Computing, Inc., 2009 WL 2750263 [C.A.7 (Ill.)] involved the interpretation of an “advertising injury” clause in a CGL policy. The insured, Websolv, was sued in Illinois state court for sending an unsolicited fax advertisement to a dental office. Websolv tendered the defense of the suit to its insurer, Auto-Owners Insurance Company, which accepted it under a reservation of rights. Auto-Owners then filed an action in federal court seeking a declaratory judgment that it had no duty to defend Websolv in the underlying Illinois suit. The United States District Court for the Northern District of Illinois found in favor of the insured, and the insurer appealed.