False arrest, detention or imprisonment happens when an insured refuses to let someone leave a premises against their will. Malicious prosecution is an insured filing a civil suit against another party without probable cause and for the purpose of malice, or filing false criminal charges against someone. For example, an insured doesn't get along with his neighbor because he regularly has loud parties. The insured has had enough and files a police report accusing the neighbor of stealing his wife's jewelry, even though no jewelry has been taken.

If an insured has a roomer or boarder and enters the room without the roomer's permission and looks at the person's personal files, that would be an invasion of the right of privacy. Likewise, if the insured violates a written agreement with the person and evicts him suddenly one day that would be wrongful eviction.

Oral or written publication that slanders, libels or invades the right of privacy of an individual would include postings to social media such as Twitter, Facebook, Instagram, BeReal, NextDoor and other sites. It would also include text messages and emails, or even just during a conversation. Both slander and libel involve defamation, which Merriam Webster defines as making false statements about a person that injure the reputation of that person. For example, saying the local mayor is a shoplifter would be an act of libel if the insured posted something on Twitter, or an act of slander if he said it to a group of people in public. Publication that invades the right of privacy is exposing someone's personal and private information to the public. For example, an insured goes to the grocery and later posts on Facebook a warning to her friends to keep children away from Joe Creep living at 123 Blockbuster Avenue because she saw a young child being fondled by that individual at the grocery store.

While it may seem odd that "fungi" is added as a definition to a personal injury endorsement, it is added because of the possibility of mold growth in a room the insured is renting out to another party. If the insured doesn't address the mold in the bathroom next to the rented-out room and mold or fungi get into that room and makes the roomer ill, that would be an invasion of the right of privacy.

SECTION II – LIABILITY COVERAGES The following is added to A. Coverage E – Personal Liability Personal Injury Coverage If a claim is made or suit is brought against an "insured" for damages resulting from an offense, defined under "personal injury", to which this coverage applies, we will:

1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the offense has been exhausted by payment of a judgment or Settlement.

ANALYSIS

Once "personal injury" has been defined, the policy explains the coverage. "Personal injury" for which the "insured" is legally liable is covered up to the policy limit, including prejudgment interest. A defense will be provided even if the suit is groundless, false or fraudulent, the same as in the policy itself. As always the carrier has the right to settle any claim as it deems appropriate. The duty to defend ends when the limits have been exhausted by payment of a judgment or settlement.

This is quite broad coverage and seems to give the insured free reign as far as saying anything about another party. However, that is not the case. As always exclusions come into play.

SECTION II – EXCLUSIONS With respect to the coverage provided by this endorsement, Section II – Exclusions is replaced by the following:

Section II – Exclusions This insurance does not apply to:

1. "Personal injury":

a. Caused by or at the direction of an "insured" with the knowledge that the act would violate the rights of another and would inflict "personal injury"; b. Arising out of oral or written publication of material, if done by or at the direction of an "insured" with knowledge of its falsity; c. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; d. Arising out of a criminal act committed by or at the direction of an "insured"; e. Arising out of liability assumed by an "insured" under any contract or agreement except any indemnity obligation assumed by an "insured" under a written contract directly relating to the ownership, maintenance or use of the premises; f. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by an "insured"; g. Arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed or implied to be provided because of the nature of the "business". With respect to other than "home-sharing host activities", this exclusion does not apply to:

(1) The rental or holding for rental of an "insured location";

(a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single-family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and

(2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees;

h. Arising out of civic or public activities performed for pay by an "insured"; i. To you or an "insured" as defined under Definition 9.a. or 9.b. This exclusion also applies to any claim made or suit brought against you or an "insured" to:

(1) Repay; or (2) Share damages with; another person who may be obligated to pay damages because of "personal injury" to an "insured";

j. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; or k. Arising directly or indirectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi", wet or dry rot, or bacteria.

2. Any loss, cost or expense arising out of any:

a. Request, demand or order that an "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants, "fungi", wet or dry rot, or bacteria; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, clean up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of, pollutants, "fungi", wet or dry rot, or bacteria.

ANALYSIS

There are nine exclusions for intentional acts of libel or slander, related to business or home-sharing, or arising out of civic or public activities performed by an insured. There are four exclusions related to the discharge, presence, or remediation of "fungi".

The first two exclusions are for acts by an insured where the insured knew the acts violated the rights of another or the insured knew to be false. The insured accusing the neighbor of being a thief when no jewelry has been taken would be excluded, as would his statements that the mayor was a shoplifter when the insured knew that to be false. However, if the insured actually did find property missing and made the claim that his neighbor stole the property with the honest belief that the neighbor did so and the neighbor sued the insured, that would be covered. What is excluded is intentional acts of the insured to slander or defame another party, or to intentionally violate the right of privacy of another party.

Any acts that occurred before the beginning of the policy period are excluded. Criminal acts committed by or at the direction of an "insured" are excluded; for example, an insured hires someone to steal something from his roomer.

Any liability assumed under contract by the "insured" is excluded other than a contract that directly relates to the ownership, maintenance or use of the premises. A contract where the insured agrees to assume liability for his actions while working at a fundraiser would be excluded.

Any acts related to the "insured's" employment are excluded as well because those incidents would be addressed by the employer. Likewise, any acts arising out of or in connection with a "business" conducted from an "insured location", or engaged in by an "insured" whether the "insured" owns, operates or is just employed by the "business" is excluded. This exclusion includes acts or omissions involving a service or duty rendered, promised, owed or implied because of the "business". The homeowners policy is not designed to provide coverage for business exposures, and as such any liability related to those exposures is excluded.

"Home-sharing host activities" are considered a "business", and therefore are excluded. There are some exceptions to the business use exclusion. The occasional rental of the "insured location" for residential purposes is covered as is the use of the residence in part as an office, school, studio or private garage. An insured may have a tax preparation office in the basement, or may give private piano or dance lessons, or rent the garage for someone to store his antique vehicle in. All those uses of the residence are covered.

If an "insured" is under the age of twenty-one and has a part-time or occasional self-employed business with no employees, that is covered as well. This allows a teenager or young adult to have a lawn mowing, pet sitting or other small business and still be covered in the event the daughter inadvertently maligns a competitor in ads for her business. However note that if the homeowner is older than 21 and is a self-insured influencer with no employees, that insured would not be covered if they inadvertently malign their competitor in a business ad.

Any injury that results from an "insured's" civic or public activities for which an "insured" receives payment is excluded. If the insured, in his role as county dog catcher, makes false statements against the dog catcher in another county that would be excluded. If a claim or suit is filed against an "insured" for the "insured" to repay or share damages with another party who is obligated to pay an "insured" for "personal injury" to an insured that is excluded. For example, the "insured" John and his friend Mike make false statements against his stepdaughter Mary. Mary is a resident relative and therefore an "insured" on the policy. Mary files a claim against John and Mike and is awarded damages for the slanderous statements that were made that harmed her professional reputation. The share of the damages to be paid by John will not be covered by the policy.

The next exclusions relate to "fungi". The first is an exclusion for injury arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. This is the standard pollution exclusion, and is followed by the standard definition of pollutants.

Also excluded is injury arising directly, indirectly, wholly or partially from the actual, alleged, or threatened inhalation, ingestion, or contact, or exposure to the existence or presence of any "fungi", wet or dry rot or bacteria. For example, a roomer is allergic to mold. The insured is having trouble remediating the mold in the bathroom next to the roomer, and mold spores enter his room and cause him to have a serious allergic reaction. The entry of the mold spores into the roomer's premises is an invasion of his privacy and is therefore excluded.

SECTION II – ADDITIONAL COVERAGES With respect to the coverage provided by this endorsement, Paragraph D. Loss Assessment is replaced by the following:

D. Loss Assessment We will pay up to $2,000 for your share of loss assessment charged against you, as an owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of "personal injury" not excluded under this endorsement. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $2,000 is the most we will pay for loss arising out of "personal injury".

SECTION II – CONDITIONS With respect to the coverage provided by this endorsement, Section II – Conditions, I. Policy Period does not apply and Conditions A. Limit Of Liability, B. Severability Of Insurance and C. Duties After Occurrence are replaced by the following:

A. Limit Of Liability Our total liability under Personal Injury Coverage for all damages resulting from any one offense will not be more than the Limit Of Liability shown in the Declarations for Coverage E. This limit is the same regardless of the number of "insureds", claims made or suits brought. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one offense. C. Duties After Offense In the event of a covered offense, you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this Policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed:

1. Give written notice to us or our agent as soon as is practical, which sets forth:

a. The identity of the Policy and "named insured"; b. Reasonably available information on the time, place and circumstances of the offense; and c. Names and addresses of any claimants and witnesses;

2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the offense; 4. At our request, help us:

a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses;

5. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "personal injury". All other provisions of this Policy apply.

ANALYSIS

The endorsement modifies the loss assessment provision of the policy. Coverage of up to $2,000 is provided when an assessment is charged against the insured when an assessment is made because of "personal injury" by a corporation or association of property owners, as long as the offense is covered by this endorsement. Assessments charged by a governmental body are not covered, and the $2,000 limit applies regardless of the number of assessments made.

The conditions state that the coverage limit will not be any more than the limit shown on the declarations for Coverage E, regardless of the number of "insureds" involved, claims made or suits brought.

Coverage applies separately to each "insured", but that does not increase the available coverage limits. If two or more "insureds" are involved in a claim, the limits do not apply separately for each "insured".

Standard duties must be performed by the "insured" after an occurrence in order for coverage to apply. The insured is to provide written notice to the insurer or the agent as soon as practicable, and the notice must identify the policy and "named insured", information as to time, place, circumstances of the offense, and names and addresses of claimants and witnesses. This is standard information needed for the company to be able to investigate the claim.

As is standard, the "insured" is to cooperate in the investigation of the claim, forward any legal notices received to the company as soon as possible, and assist as requested by the company with making settlement, enforcing rights of contribution against a liable party, attend hearings and trials, secure and give evidence and obtain the attendance of witnesses.

The "insured" is not to make any payments, assume obligations or incur expenses other than first aid at the time of "personal injury". Making other payments may be construed as an admission of guilt.

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