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Reevaluating the Insurability of Punitive Damages Awards

By Amanda M. Leffler and Gabrielle T. Kelly
March 29, 2013

Too often, policyholders and their counsel accept on faith that their insurance does not cover punitive damages as a matter of public policy. In many jurisdictions, however, there is coverage for all punitive damages, while others allow coverage of punitive damages under certain circumstances. In these jurisdictions, whether punitive damages are covered will depend largely upon the law applicable to the claim and the basis for the damages being imposed upon the insured. The various approaches taken by courts across the country are discussed below.

Insurability of Punitive Damages Allowed

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