Exclusion of coverage for punitive damage awards in insurance. The Punitive Damages Exclusion is a clause found in some insurance policies that specifically excludes coverage for punitive damages awarded in lawsuits. Punitive damages are intended to punish the defendant for particularly harmful behavior and deter others from engaging in similar conduct. Unlike compensatory damages, which … Read more
Self-Insured Retention (SIR) is the amount a business must pay out of pocket before its insurance coverage begins. It is the portion of a loss that a business must pay out of pocket before its insurance coverage takes effect. This is different from a deductible, as the self-insured retention applies to all claims, and the … Read more
Property damaged but still under the owner’s control. Impaired Property coverage is a provision in business insurance policies that protects against claims arising when a company’s product or work causes another party’s tangible property to become unusable or impaired, but without causing direct physical damage. This coverage is commonly found in Commercial General Liability (CGL) … Read more
A bond ensuring compliance with court orders or judgments. A judicial bond is a type of surety bond required by a court that ensures compliance with its orders, judgments, or rulings. This bond serves as a financial guarantee that the bonded party will fulfill their obligations to the court, such as payment of damages or … Read more
Coverage for additional benefits to employees not mandated by law. The Voluntary Compensation Endorsement is a provision in business insurance that offers coverage for certain employees who may not be protected under state workers’ compensation laws. This endorsement is especially relevant for businesses in jurisdictions where workers’ compensation is not mandated for specific employee categories … Read more
Expenses incurred to defend against legal claims. Legal Defense Costs refer to the expenses associated with defending a business against lawsuits or legal claims. These costs can include attorney fees, court fees, and other related expenses incurred while managing legal proceedings. Legal Defense Costs are a critical aspect of business insurance, as they can quickly … Read more
