Final answer:
The scathing review posted by Pat in the local paper would be considered libel as it is a defamatory statement in a fixed medium that could damage the rival business's reputation. Coverage B in Pat's CGL policy may cover libel under Personal and Advertising Injury.
Step-by-step explanation:
Pat posts a scathing review of a rival business in a local paper. According to Pat's Commercial General Liability (CGL) policy, this claim would be considered libel and may be covered under Coverage B - Personal and Advertising Injury.
Libel refers to defamatory statements made in a fixed medium, especially writing but also a picture, sign, or electronic broadcast, where false information is presented as fact, potentially damaging a person's or business's reputation.
The key distinction between libel and slander is that libel is defamation in a fixed medium, while slander is spoken defamation.
The legal case New York Times v. Sullivan is significant as it established the precedent that public officials must show actual malice to prove a claim of libel.
Malicious prosecution, another option listed, refers to an action that is inappropriate for this scenario since it involves judicial proceedings that were initiated with malice and without probable cause, and it is not related to defamatory statements.