The Likely Insurance Treatment of Treble Damage RICO Judgments

Loss payment provisions of fidelity and liability bonds, in their varying formulations, generally cover an insured against having to pay damages proximately resulting from an insured loss. The insured is covered for damages that he is legally liable to pay or that he incurs from an insured risk. Punitive damages, however, are often not recoverable, whether by specific exclusion or application of the laws of numerous states.1 Many policies, in addition, also exclude losses that are not compensatory. We may phrase the issue for discussion as follows: