Criminal Liability

Updated: 09 June 2023

What Does Criminal Liability Mean?

Criminal liability, in the context of insurance, is one that arises from the violation of a penal law or the commission of a criminal act. It is also defined as any malicious action that causes harm or damage to another and is punishable by certain penalties, such as imprisonment, fines, or both.

Liability insurance policies do not cover criminal liabilities.

Insuranceopedia Explains Criminal Liability

Criminal liability is the liability of a person toward another person or the State for a commission of a crime. Someone who commits a crime knowingly, willfully, and maliciously is criminally liable and may be sentenced to imprisonment or fined.

Liability insurance policies provide protection for injuries caused by the insured towards another person or property. However, if the acts are criminal or committed with malicious intent to violate the law, the acts are not covered. Thus, the person committing the crime will still be held criminally liable. Insurance is not intended to protect criminals from obtaining benefits out of their acts or omissions in violation of the law.

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