Section 9.32 Penalties and Fines

• Library: Insurance Practice 2015

Penalties and fines are specifically excluded from the categories of covered loss. This exclusion would apply to the consequences of most criminal judgments. It might also exclude coverage for punitive damages.

A clause in an insurance policy that generally excludes coverage of “penalties” and “fines” serves as a prohibition against coverage of punitive damages. Carey v. Employers Mut. Cas. Co., 189 F.3d 414 (3^rd Cir. 1999). In Missouri, the plain language of the policy determines whether the insured is...