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How Insurers Try To Limit Coverage For Punitive Damages

By Kelby Van Patten ( April 16, 2018, 5:43 PM EDT) -- Insurers treat it as a given that their policies do not cover punitive damages, and insureds often mistakenly accept that premise. However, there are circumstances in which punitive damages may be covered, and some insurers even sell policies that specifically provide coverage for punitive damages. This article explores (a) the arguments insurers make to avoid paying for punitive damages; (b) some of the ways to defeat those arguments; and (c) some of the creative tactics insurers are employing as they try to sell insurance for punitive damages awards even when the law prohibits that kind of coverage....

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