I need to know if it's good to have or not.
2007-10-20 10:00:38 · 6 answers · asked by Bones 1 in Business & Finance ➔ Insurance
Punitive damages exclusion is standard in all insurance policies - you can't not have it.
Punitive damages are money above expenses/pain and suffering. They are awarded by a jury to punish a person or cooperation for their behavior.
2007-10-20 13:58:03 · answer #1 · answered by Boots 7 · 0⤊ 0⤋
Most insurance policies have a Punitive Damages Exclusion that says the policy will not pay for punitive damages awarded by a judge or jury. Punitive damages are usually a money award that is over and above the money award for injuries and lost wages. As the name implies, punitive damages are designed to punish. An insurance policy only covers money awarded due to negligence not money awarded as a punishment.
For example, an idiot driving drunk hits a families mini-van and injures the dad & a couple of kids. It's the drunks 8th DUI. For whatever reason the drunk's insurance company can't settle the claim and the family files a lawsuit. The drunk has 100k in coverage. The jury awards $25,000 for the injuries but awards $250,000.00 in punitive damages to punish the drunk driver for having 8 DUI's. The drunks insurance company will pay the 25K, but not any portion of the $250,000.00 even though the company will still have $75K in left over coverage after paying the $25K.
If you get into an accident, get sued and a judge or jury awards punitive damages against you then it is a bad exclusion for you. But there is no way around the exclusion that I am aware of.
2007-10-20 13:32:51 · answer #2 · answered by fighting saints 6 · 2⤊ 0⤋
Punitive Means
2016-11-14 08:27:11 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The exact definition varies from state to state, but in the US generally, punitive damages are only awarded when the defendant's behavior is intentional, malicious, oppressive, or fraudulent. Some states allow punitive damages if the defendant's behavior was grossly negligent. That means that they acted with extreme disregard of the possible consequences. That is different from the "ordinary" negligence of, for example, a simple car accident. In many states, you can ask for punitive damages in small claims court. However, the total damages awarded cannot be more than the small claims limit. So, if the limit is $5,000 and you have actual damages (like repair costs, medical bills) of $2,000 and you ask for punitive damages, the most you will receive in punitive damages is $3,000,
2016-05-23 22:19:07 · answer #4 · answered by ? 3 · 0⤊ 0⤋
If you get ordered to pay punitive damages in a lawsuit your insurance company will not pay that portion.
Punitive damages are awarded as a way to punish a defendant.
It is a typical exclusion
2007-10-20 15:30:38 · answer #5 · answered by Karen B 2 · 0⤊ 0⤋
This means you can only get reimbursed in the suit for actual damages not personal pain and suffering. It depends on what side of the law suit you are on if this is good or bad.
2007-10-20 10:08:17 · answer #6 · answered by Diane M 7 · 0⤊ 0⤋