Are punitive damages typically covered under a standard CGL policy?

• A. Yes, always
• B. Sometimes
• C. No; punitive damages are generally excluded
• D. Only if a separate endorsement attaches

Answer: (C)

Punitive damages are not typically covered under a standard CGL because this policy is designed to indemnify against actual losses (bodily injury and property damage) and reasonable defense costs for covered claims, not to insure penalties imposed to punish wrongful conduct. The standard form explicitly excludes punitive or exemplary damages, fines, and penalties. If coverage for punitive damages is needed, it would usually require a separate endorsement or a different policy with language that adds that exposure, and even then it depends on state law and specific wording.