Citation

Long JD. J. Risk Insur. 1977; 44(1): 1-20.

Copyright

(Copyright © 1977, American Risk and Insurance Association, Publisher John Wiley and Sons)

DOI

10.2307/251853

PMID

unavailable

Abstract

Liability insurance for punitive damages is unsettled. The pervasiveness of compensatory damages renders punitive damages largely superfluous; yet, punitive awards expand in frequency and magnitude. Courts are split as to liability insurance coverage. Insurer practices are diverse. Commentators cannot agree on when punitive awards are justified or whether liability insurance should apply. With punitive damages being awarded even for unintentional injuries, people need insurance; but costs should be borne only by those who buy the protection. The author recommends exclusion of punitive damages in liability insurance with an optional buy-back as to unintentional injuries in states where public policy permits.