What exclusion applies to both personal injury and advertising injury in the business owners policy?

The exclusion that applies to both personal injury and advertising injury in a business owners policy is the willful violation of a penal statute or ordinance. This exclusion is in place because insurance policies typically do not cover acts that are intentionally illegal or violate established laws, as these actions can be seen as a deliberate choice made by the insured rather than an insurable risk.

When it comes to personal injury and advertising injury, which include things like defamation, invasion of privacy, or misrepresentation, there is a clear distinction made for acts that are purposely harmful or unlawful. By excluding claims arising from the willful violation of laws, insurers protect themselves from having to indemnify insured parties for claims rooted in their own unethical or illegal behavior. Therefore, this exclusion helps maintain the integrity of insurance as a risk management tool by ensuring that it does not cover unlawful activities.