Insurance Question

What is an Advertising Injury?
An advertising injury is an injury to a third-party brought about by the business' advertising its goods and services. This can occur by copyright or trademark infringement. It can also occur as a claim of libel, slander, or invasion of privacy. Typically, a competitor of your business complains that an act, advertisement, practice, or comment you or your staff has made has damaged their business. For example, in comparing products, your advertisement uses a photo of your competitor's product and makes a false claim about the competitor's product. The competitor sues your business for a variety of claims: defamation, trademark infringement, etc. Your commercial policy would provide a defense and indemnity for this kind of claim.

http://businessinsure.about.com/od/liabilityinsurance/a/advinjcov.htm

Often insurance policies are bundled, some from column A, some from column B etc. Unless they are charging an exorbitant price for this, I wouldn't worry about it. Of course you could always set up a meeting between the insurance agent and the Board to have him explain the policy and its limits. Just like a Reserve Study should be examined every few years to make sure it is keeping up with inflation; insurance policies should be reviewed to make sure your limits are in line with what it would cost to replace a building with 2011 dollars, not what it cost in 2000.