What is often not covered by liability insurance?

Punitive damages are often not covered by liability insurance because they are intended to punish the wrongdoer for particularly egregious behavior rather than to compensate the victim for a loss. Liability insurance typically aims to cover compensatory damages, which are payments made to compensate a victim for actual losses or injuries. Punitive damages, on the other hand, are awarded over and above compensatory damages when a defendant's conduct is deemed especially harmful or malicious.

In contrast, other elements such as negligent acts and legal fees generally fall under the scope of liability coverage. Acts of God, also known as natural disasters, may have varying degrees of protection depending on the specific provisions of the policy, but liability insurance typically focuses on coverage for negligent acts and associated legal expenses rather than punitive measures.