Coverage intent
A punitive damages exclusion limits coverage for punitive, exemplary, multiplied, or similar damages awarded to punish or deter conduct.
Coverage impact
Punitive damages wording can affect umbrella, excess, professional, and management liability products because insurability and public policy treatment vary by state and claim type.
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Punitive Damages Exclusion
Form #: MM CWBPP 0014 04 26
Millers Capital Insurance Company
Businessowners
MD | Jun 30, 2026
This endorsement excludes punitive and exemplary damages and defines punitive damages by their punishment and deterrence purpose.
Punitive and exemplary damages exclusion
In consideration of the premium charged, it is agreed that the coverage afforded by this policy does not apply to fines, penalties, "punitive damages" or exemplary damages, nor to compensatory damages allowed for the legal fees of any plaintiff who is awarded any of the above. As used in this endorsement, the following term will have the following meaning: "Punitive damages" are those that may be imposed to punish a wrongdoer and to deter others from similar conduct.
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Notable language points
- 01Removes fines, penalties, punitive damages, and exemplary damages.
- 02Also reaches compensatory damages allowed for legal fees tied to those awards.
- 03Defines punitive damages by their punishment and deterrence function.
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