Final answer:
Defamation does not cover the insured for intentional loss, as this refers to intentional actions causing harm, which fall outside the protection of insurance policies. Coverage is intended for accidental incidents and not for deliberate acts of harm.
Step-by-step explanation:
Defamation insurance generally covers claims involving false statements that harm someone's reputation, such as libel or slander. However, it does not cover intentional loss, which refers to damages or losses that occur due to intentional actions or behavior by the insured. Essentially, if an insured party intentionally causes someone's reputation harm, whether through false arrest, libel, or slander, such an act would likely be considered outside the scope of coverage under a typical defamation insurance policy. This is because insurance is designed to protect against unforeseen and accidental incidents, not deliberate or intentional acts of harm.
Governed by case law such as New York Times Co. v. Sullivan, the threshold for a public figure to prove defamation is higher, requiring proof of "actual malice," which is knowledge of falsity or reckless disregard for the truth. Private individuals, however, face a lower barrier to claims, relying on the standard of negligence set forth in Gertz v. Robert Welch, Inc. Nevertheless, both libel and slander must be based on false statements presented as facts, and not merely on opinions, to be actionable under defamation law.