Call Us 866.940.1101 ☰ ˟
866.940.1101
Logo
  • Home
  • About Us
    • About Us
    • Employee Directory
    • Partners Page
    • Event Calendar
    • Refer a Friend
  • Get A Quote
  • Products
    • Lawyers Malpractice Insurance
    • Accountants Professional Liability
    • Dentist Malpractice Insurance
    • Business Owners Policy
    • Cyber Liability Insurance
    • Workers Compensation Insurance
    • Title Agents E&O Insurance
    • Paralegal Malpractice Insurance
  • Testimonials
  • Common Terms
    • Common Terms
    • Frequently Asked Questions
  • Blog
  • Contact
Home > Blog > Malpractice Insurance – Punitive Damages
THURSDAY, OCTOBER 13, 2016

Malpractice Insurance – Punitive Damages

The time to check your malpractice coverage is not after the punitive damage award against you.  But occasionally we are asked if a particular malpractice insurance policy covers punitive damages.  Because a punitive damage awards are normally awarded for egregious acts few malpractice policies do but many do not.  As with all Professional Liability Insurance policies, one needs to read the policy itself to determine if there is coverage.  One of the more common places to find the punitive damages exclusion is where it is in the Wesco Lawyers Professional Liability Insurance policy in the definition of damages:

E.    “Damages” means  judgments,  awards  and  settlements  if  negotiated  with  the  assistance  and  approval  of  theCompany.  Damages do not include:

 

4. punitive or exemplary amounts and any multiplied portion of multiplied awards;

 

But you can also find the exclusion in the insuring agreement or the exclusion section of the policy. 

The more difficult task is determining if a policy does cover punitive damages.  It is rarely stated that damages include punitive damages.  So normally you are left with a thorough reading of the policy to determine if there is not a punitive damages exclusion.

Even after you have done all of this to find if the policy will cover punitive damages, there is one more place to check.  That is to determine whether the payment of punitive damages is allowed in your particular state.  Even if the policy either states or does not exclude punitive damages, the policy must conform to the laws and rulings for the state you are in.  In almost 50% of the states, it is not permitted to insure for punitive damages.

It is pretty straight forward to check.  A simple web search will yield a number of sites that will tell you this.  The following is one of those sites:

http://www.mcandl.com/puni_chart.html

 As punitive damages can be substantial, if you have concerns about this being awarded against you it is important to review the policy in question and then determine if in your state it is even insurable.

Posted 12:26 PM

Tags: malpractice insurance, punitive damages
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

  • lawyers professional liability insurance(429)
  • attorney malpractice insurance(336)
  • attorney malpractice(322)
  • legal malpractice(223)
  • legal liability(134)
  • data breach(92)
  • cyber insurance(91)
  • ethics(87)
  • erp(54)
  • malpractice insurance(47)
  • claims(39)
  • title agency e&o(36)
  • accountant e&o(34)
  • extended reporting period endorsement(30)
  • tail(27)
  • phishing(25)
  • claims made coverage(19)
  • extended reporting period(18)
  • accountant errors & omissions(17)
  • claims reporting(17)
  • prior acts(17)
  • cyber security(16)
  • legal malpractice insurance(16)
  • cyber liability(16)
  • ransomware(16)
  • claim prevention(16)
  • crime insurance(15)
  • attorney protective cle(14)
  • the hartford weekly newsletter(14)
  • professional liability insurance(12)
  • business owners insurance(11)
  • legal liability insurance(11)
  • retirement tail(10)
  • full prior acts(10)
  • fee suits(9)
  • bop(9)
  • title agent errors & omissions(9)
  • cyber crime(9)
  • accountant errors & omissions insurance(9)
  • prior acts date(8)
  • webinar(8)
  • non-practicing erp(8)
  • cyber liability insurance(8)
  • lawyers(8)
  • claims made(8)
  • employment practices liability(7)
  • attorney protective 2019 free cle webinar(7)
  • non-practicing extended reporting period endorsement(7)
  • malpractice claims(7)
  • policy exclusions(7)

View Mobile Version
Logo
Quick Links
Home Our Products Customer Service Payment Options Common Terms
About Us Refer A Friend Our Carriers Blog Contact Us
Location
2430 Camelot Ct SE
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
Email: info@L2ins.com
Facebook Twitter Social LinkedIn
© Copyright. All rights reserved.
Powered by Insurance Website Builder