Did You Know? - Punitive Damages Exclusion in Commercial General Liability (CGL) Insurance Policy

Liability cases are common in the insurance industry. In these cases, an individual or entity may be held responsible for property damage or bodily injury suffered by a third party. This situation often arises for Insureds engaged in service-based businesses, such as hotels, villas, or shopping malls.

In some cases, third parties may file claims against the Insured due to negligence that results in property damage or bodily injury. In certain situations, they may also seek punitive damages as a penalty for the Insured's negligence.

However, did you know that the Commercial General Liability (CGL) Insurance Policy includes an exclusion for Punitive Damages? The Policy specifies the following:

This insurance shall not apply to fines, penalties, punitive damages, exemplary damages, treble damages, or any other damage resulting from the multiplication of compensatory damages.

This provision may vary depending on the terms and conditions of your Policy. Therefore, we encourage you to review your Policy’s terms and conditions carefully.

Hopefully, the information above enriches your understanding of the liability exclusions in the CGL Insurance Policy. For more information about MSIG Indonesia’s insurance products, please visit our official website at www.msig.co.id or call our contact center at 1500 674 (MSI) to find comprehensive information and interactive services.