Deliberate and Wilful Acts are uninsurable

Deliberate and Wilful Acts are uninsurable

Wilful and Deliberate Acts

These are general considered uninsurable risks simply because the perpertrator has hastened the loss. A principal of insurance is that the risk should be fortuitous to be insurable. In other words, totally accidental or unexpected.

However, this is not always black and white. Particularly when there are other influences which we often categorise as:

The degree of randomness and the moral and physical hazards have either a positive or negative influence on risk. Other factors include Public policy and legal restrictions.

The extreme example of the uninsurability of a risk is a deliberate and wilful act with the most obvious example being Arson. Deliberately burning down property. If the perpetrator has an insurable interest in the property, such acts would be implied in an insurance contract not to be covered due to its deliberate and wilful act. If it was done by an unknown party or a third party, then the Insured suffering the loss woulod expect to be covered.

If the owner of a company was dishonest or acted fraudulently, then a Fidelity or Crime Section of the policy will not respond. However, if it was one of his employees that acted this way, the business owner can be vicariously liable for their actions and this would be an insured event.

Arson – Rozelle Fire, Property Owner charged

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