How is defamation defined in the context of insurance?

Defamation, in the context of insurance and broader legal definitions, refers to a false statement that is made with the intent to harm or injure a person's reputation. This means that the statement must be untrue and should be expressed in a manner that damages the subject's standing or reputation in the eyes of others, which could result in various consequences, such as loss of business or social standing. This type of legal issue is relevant for insurance agents and companies, particularly when dealing with claims related to personal injury or reputation damage.

In insurance policies, coverage for defamation, which may fall under personal liability provisions, addresses circumstances where one party may seek damages against another for reputational harm caused by untrue assertions. The distinguishing factor here is the requirement of falsehood—truthful statements, regardless of their impact, do not constitute defamation. This is why the other options do not fit the definition of defamation in the legal context.