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Punitive Damage Exclusions in Motorists Insurance

Some automobile insurance policies have clauses that specifically exclude the payment of punitive or exemplary damages against an insured. Punitive or exemplary damages do not pay for bodily injuries or property damage. They are awarded over and above payment for those items. Punitive or exemplary damages are intended to punish the person who caused the injuries or damage or to make that person an example to deter others from such conduct.

So long as the punitive or exemplary exclusion is not ambiguous and does not violate a state’s public policy or statutes, most courts will uphold the exclusion and enforce it. Most states agree that an insurer does not have to provide insurance coverage for an award of punitive or exemplary damages against an uninsured or underinsured person.

Several states have statutes that prohibit the punishment of intentional wrongdoers through punitive damage awards. In such states, insurance coverage for punitive or exemplary damages would not exist unless that coverage is specifically included in the insurance policy. Therefore, no punitive or exemplary damages exclusion is needed for the insurance companies in those states to avoid paying awards for punitive damages.

State laws regarding punitive or exemplary damage exclusions can vary in other ways. Some states do not permit an insurance company to provide insurance coverage for punitive damages awarded due to the acts or omissions of an insured’s employees or agents, if the insured did not know of those acts or omissions. Other states permit insurance coverage for punitive damages that arise out of a person’s death or injury due to an insured’s negligence.

Recession Proof Business Income

Cash during a recession is a rare and appreciated thing.

It’s when economic setbacks hit that one really finds out how well run a business happens to be. It’s essential for them to be paid on time and get the money right to the bank. Now is not the time to cut corners on things like sound advice from a Sacramento business lawyer. It doesn’t cost that much to draft a set of tightly knit terms and conditions to make sure the company is running well and in the black.

There are definitely several matters that need to be included in such a legal document. One of those is to make sure the terms and conditions laid out are the terms of the actual “business” for performing and delivering on its contract, not the terms of clients or customers.

Definitely lay out very precisely when payment is expected for services or products. Chances are the terms the company was initially following were a tad too generous. For example, many invoices state payment is due 30 days after the date the invoice was sent.

Doing the math will reveal that those terms may delay payment by up to two months. This is a serious impediment to cash flow, so reducing the payment period to 14 days makes a great deal of sense, and this is something a Sacramento business lawyer will explain. Since cash is what drives a business and keeps it afloat, tightening up the terms and conditions of payment is a smart business move.

While some companies feel that charging interest on unpaid bills is “not the thing to do to upset a customer,” there is a legal right to charge for that interest. When doing this, include all the pertinent details, such as the amount of charges and how they are applied, etc. Interest rates should also be laid out very clearly in any terms and conditions.

Never rely on a verbal contract because despite what people may think, it could end up being a binding contract. The terms of agreements made under those conditions are enforceable under some circumstances. Instead, have any contract entered written by a Sacramento business lawyer.

The terms and conditions have been spelled out clearly, or have they? This is something that needs to be checked. If the terms and conditions are not as clear as one would think, there may be ways to circumvent them. What any business should hope to accomplish with its terms and conditions is to have them so clear that there is no way they would land in court in the first place. This can be accomplished by an experienced Sacramento business lawyer.

Never assume that because any terms and conditions that have been written for the business are clear to customers or clients. This may not be the case. The firm has to take steps to ensure anyone that does business with it are totally aware of the terms and conditions under which the firm operates. This will go a long way toward avoiding any potential disagreements. With firm terms and conditions in place and by adhering to them, economic recovery is just that much easier in the long term.