Punitive Damages Coverage

In many instances, punitive damages, along with compensatory damages, are applied to punish a negligent party, while also being used to discourage others from the same type of behavior. Whether punitive damages are insured depends on state law and the policy itself, along with applicable court decisions. Depending on your specific risk it might be prudent to take a few steps to deal with this liability beforehand. One action to take is to request from your agent/broker,to check into the possibility of having punitive damages coverage included in your policy or to have them search elsewhere for extra coverage for this specific liability. It's always best to deal proactively with these types of concerns before something happens rather than waiting until after the fact when it's normally too late.

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