Criminal Liability
What Does Criminal Liability Mean?
Criminal liability, in the context of insurance, refers to liability that arises from violating a penal law or committing a criminal act. It involves any intentional or malicious action that causes harm or damage to another party and is punishable by penalties such as imprisonment, fines, or both.
Liability insurance policies do not provide coverage for criminal liabilities.
Insuranceopedia Explains Criminal Liability
Criminal liability refers to a person’s responsibility to another individual or the State for committing a crime. A person who knowingly, willfully, and maliciously commits a crime is criminally liable and may face imprisonment or fines.
Liability insurance provides protection for damages or injuries caused by the insured to another person or property. However, if the actions are criminal or carried out with malicious intent to break the law, they are not covered by the policy. The person committing the crime will still be held criminally liable. Insurance is not designed to shield individuals from benefiting from illegal acts or omissions.
