Law Commons^™

Does and should a wrongdoer’s liability insurance cover an aggrieved party’s claim for restitution (e.g., a claim for the disgorgement of ill-gotten gains)?  This article answers those questions.  It does so by first answering the question of whether claims for restitution are covered under the terms of liability insurance policies.  Then, after concluding that they are, it addresses the question of whether claims for restitution should be insurable as a matter of public policy and insurance law theory.  There are long-standing legal and equitable principles that, on the one hand, dictate that a wrongdoer should not be allowed to benefit …

Does and should a wrongdoer’s liability insurance cover an aggrieved party’s claim for restitution (e.g., a claim for the disgorgement of ill-gotten gains)?  This article answers those questions.  It does so by first answering the question of whether claims for restitution are covered under the terms of liability insurance policies.  Then, after concluding that they are, it addresses the question of whether claims for restitution should be insurable as a matter of public policy and insurance law theory.  There are long-standing legal and equitable principles that, on the one hand, dictate that a wrongdoer should not be allowed to benefit …