Professional Liability Insurance

A public relations firm was hired to assist in promoting the opening of a new restaurant, which used local and sustainably produced foods. A local celebrity was recruited to be part of the advertising campaign, and the contract for all parties included a confidentiality provision.

An investigative reporter ran a news story highlighting alleged misrepresentations regarding the use of locally sourced foods in previous businesses run by the restaurant’s owners. The celebrity was then recorded making slanderous remarks about the reporter and restaurant suppliers, alleging the information was provided by employees of the PR firm. These remarks were posted on social media.

The restaurant sued the PR firm, alleging breach of confidence and breach of contract.

The public relation firm’s insurer covered $75,000 in defense costs incurred prior to reaching a negotiated agreement to dismiss the complaint and waive all outstanding fees.

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizInsure for Agents.