Above and Beyond Research

Management Liability Case Study

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An insurer’s reservation of rights letter contained language stating there was no coverage for punitive damages as a matter of public policy. The insured asked if Gallagher’s Management Liability practice team could assist in getting a favorable resolution. While even law firm summaries of the 50 states and their positions on punitive damages state that punitive damages are not insurable in the state in question, no legal support could be found to corroborate that position. In fact, case law only referred to situations interpreting policy language and provisions. This case study looked beyond case law and statute research and engaged the state’s Department of Insurance.