Does the Policy Cover Punitive Damages?
Another key point to investigate is whether the insurance policy covers punitive or exemplary damage awards. Some states such as New York, do not permit insurance companies to insure you against punitive damages. Because an award of punitive damages may be substantial (sometimes even more than actual damages and attorneys’ fees), where permissible, you should make sure that your insurance policy will cover any punitive or exemplary damage award. • Does the Policy Require a Lawyer’s Opinion? Many insurers will not issue a media risks policy unless the publisher, or author, provides an opinion letter from a publishing lawyer analyzing the risks of a lawsuit. Find out whether you will need to provide such a legal opinion letter because the cost of hiring a lawyer to review your manuscript and write an opinion letter can be significant. The cost of obtaining the legal review and opinion should also be taken into account when comparing policies and their rates. • What Types of Claims Are Co