What is an example of defamation in insurance

Which of the following is an example of defamation?

Defamation is a false statement presented as a fact that causes injury or damage to the character of the person it is about. An example is Tom Smith stole money from his employer. If this is untrue and if making the statement damages Tom's reputation or ability to work, it is defamation.

What does defaming mean in insurance?

Defamation — any written or oral communication about a person or thing that is both untrue and unfavorable. Media liability and general liability policies typically provide coverage for claims alleging defamation (although general liability policies exclude such coverage for insureds engaged in media businesses).

What do insurance companies do with the premiums they receive from the insured?

Insurers use the premiums paid to them by their customers and policyholders to cover liabilities associated with the policies they underwrite. They may also invest in the premium to generate higher returns. This can offset some costs of providing insurance coverage and help an insurer keep its prices competitive.