Recent Decision Determines Retail Displays May Qualify As 'Advertisements' Under CGL Insurance Policies

A recent decision interpreting insurance coverage for "advertising injury" under commercial general liability (CGL) insurance policies ruled that claims of allegedly infringing product displays can trigger the duty to defend. Most businesses purchase CGL insurance as a key part of their liability insurance programs. The current version of the typical form used by insurers in connection with CGL policies provides coverage for "advertising injury" caused by an offense committed in the course of "advertising" the insured's goods, products or services. That form typically defines "advertisement" as notice published to the general public at large or specific market segments for purposes of attracting customers or supporters. A recent Illinois appellate court decision, however, has recognized that advertising injury coverage extends to certain product displays. Specifically, the First Judicial District of the Appellate Court of Illinois determined that retail store