Glossary
Personal Injury Coverage: Not What It Sounds Like
By LiabilityGap EditorialUpdated 2 min read
The short answer
Does my home insurance cover a defamation lawsuit over something I posted online?
Often not. In insurance wording, "personal injury" is a defined term for defamation, false arrest, and invasion of privacy, separate from bodily injury. Many standard Canadian home policies don't cover it, or only by endorsement. An umbrella policy commonly adds it, bundled at no separate charge, for roughly $200 to $300 a year.
In insurance policy wording, "personal injury" does not mean bodily injury. It's a defined term covering injuries to a person's reputation, liberty, and privacy — typically defamation (libel and slander), false arrest or detention, malicious prosecution, wrongful eviction or entry, and invasion of privacy. Bodily injury — broken bones, brain injuries — is a separate defined term with its own coverage.
The distinction matters because the two are covered differently. Standard Canadian home policies are built around bodily injury and property damage; many don't cover defamation at all, or only by endorsement. Umbrella and excess policies commonly add personal injury coverage — it's the umbrella's signature extension, one of the few places the policy is genuinely broader than the policies underneath it.
Why it matters to you#
Defamation used to be a publisher's problem. Now anyone with a Google Reviews account is a publisher. A one-star review calling a contractor a scammer, a heated post in a community Facebook group, an accusation in condo-board minutes — Canadian courts hear defamation claims arising from exactly this, and defending one costs real money even when you win. If your home policy is bodily-injury-only, a defamation suit lands on you personally: your lawyer, your settlement. An umbrella with personal injury coverage typically picks up both defence and damages, subject to its terms — and it usually comes bundled at no separate charge. Expect roughly $200–$300 per year for a first $1 million of umbrella coverage, and about $50–$75 per additional $1 million (estimates based on typical Canadian broker pricing, not quotes).
In practice#
- You post a blunt review of a local business and it sues for libel. Bodily injury coverage is useless here — this is a personal injury claim, in the policy sense.
- A volunteer board member is sued over statements in meeting minutes — a common and underappreciated way ordinary people end up defamation defendants.
- One caution: coverage is for the honest mistake, not the deliberate smear. Statements you knew were false are generally excluded.
Frequently asked questions
What does personal injury mean in an insurance policy?
It's a defined term covering injuries to reputation, liberty, and privacy — typically defamation (libel and slander), false arrest or detention, malicious prosecution, wrongful eviction, and invasion of privacy. It is not the same as bodily injury.
Does my home policy cover defamation?
Often not, or only in limited form — many standard home policies are built around bodily injury and property damage. Personal injury coverage is commonly added by endorsement or through an umbrella or excess policy. Check your wording.
How much does umbrella personal injury coverage cost?
It's usually bundled into the umbrella itself: roughly $200–$300 per year for a first $1 million of umbrella coverage, and about $50–$75 per additional $1 million. Estimates, not quotes.
How exposed are you? Most people have no idea.
10 questions. 2 minutes. No email needed to see your score.
Check my lawsuit exposure