Is there cover for fines and penalties?

  • Yes, the definition of Damages includes fines and penalties, but only to the extent that they are insurable by law.
    • A fine resulting from a negligent late submission of documents, for example, might be insurable.
    • By contrast, a fine intended to punish bad behaviour is not insurable as this would be contra bonos mores (against the public interest). A fine for driving recklessly, for example, is not insurable.
  • There is no cover for fines and penalties arising out of any Payment Card Industry Standard or any Payment Card Company rules.

Example: the fine for late payment of your credit card debt.

Cyber Risk