I posted a video saying a popular $200 moisturizer “burned my face and felt like battery acid.” The video went viral. Three days later, I was served with a defamation lawsuit claiming I made false statements of fact that caused the brand $2M in lost sales. They aren’t just asking for a retraction; they are suing for “Trade Libel.”
Key Takeaways
- Opinion vs. Fact: saying “I didn’t like it” is opinion. Saying “It contains battery acid” is a statement of fact. If it doesn’t contain acid, that’s defamation.
- Defamation Coverage: You need a policy that covers “Libel, Slander, and Defamation.” This is usually found in Professional Liability or Media Liability policies.
- The “Malice” Exclusion: If you admitted in DMs that you lied to hurt the brand, insurance denies the claim under the “Intentional Acts” exclusion.
- Defense Costs: Even if you win (truth is a defense), the legal fees to prove you were right can cost $50,000. Insurance pays the lawyers.
The “Why” (The Trap): Personal Advertising Injury
In a standard business policy, there is a section called “Personal and Advertising Injury.”
This is where Libel/Slander coverage lives.
The Trap: Some “Creator” policies strip this out to save money, or they limit it to “non-digital” publication (which is useless for you).
Also, check for the “Disparagement of Goods” exclusion. Some policies cover slandering a person, but exclude slandering a product.
[IMAGE: Diagram showing the line between “Negative Review” (Protected) and “Defamation” (Sueable)]
The Investigation: I Called Them
I asked, “I’m being sued for a bad review. Will you defend me?”
1. The Hartford
- The Answer: Their Business Owners Policy (BOP) generally includes Personal Advertising Injury. They would likely defend this, provided I didn’t knowingly lie.
2. Next Insurance
- The Answer: Includes Personal/Advertising Injury in the base Pro package. Good value for this specific risk.
3. Homeowners Insurance
- The Answer: Denied. The “Business Pursuits” exclusion kills this. Since I monetized the video (or the channel), personal umbrella policies won’t touch it.
Comparison Table
| Carrier | Defamation Coverage | Product Disparagement? | Defense Costs |
| Next | Yes (limits apply) | Yes | Inside Limits |
| Hiscox | Yes (Media Liab.) | Yes | Outside Limits (Better) |
| Home/Renters | No | No | No |
Step-by-Step Action Plan
- Silence: Do not post a “They are suing me!” video. That aggravates the damages.
- Call Insurance Claims: Report the lawsuit immediately. Late reporting can void coverage.
- Gather Evidence: Save the raw footage showing your red/burned face. Truth is the ultimate defense against libel. If you can prove it actually burned, you win.
- Retraction? Let your insurance lawyer decide if you should issue a retraction.
FAQ
What if I didn’t name the brand but showed the bottle?
That’s still defamation. If the audience can identify them, they can sue.
Does “allegedly” save me?
No. Saying “This cream is allegedly poison” is still actionable if a reasonable person interprets it as a factual claim.
Can I countersue?
Yes, for “SLAPP” (Strategic Lawsuit Against Public Participation) if your state has anti-SLAPP laws. Insurance lawyers love using this to get cases dismissed.