Bermuda Punitive Damage Wrap
Bermuda Punitive Damage Wrap
2 PagesBermuda punitive damage wrap policies address the uncertainty and financial risk of punitive damage awards, which arise when compensatory damages are seen as insufficient and a defendant’s conduct is deemed reckless or malicious. These awards vary greatly by state, with 48 states allowing them and 23 prohibiting domestic insurers from covering them. To bridge this gap, U.S. insurers offer wrap policies issued through their Bermuda affiliates, providing coverage solutions where domestic options are limited or restricted.
