What is a Wrongful Act?
A wrongful act, also known as a wrongful act exclusion or wrongful conduct exclusion, is commonly used in the insurance industry. It may refer to an act or omission of a policyholder that results in legal liability or financial loss to another person. It is also used to describe any intentional or negligent act that is unlawful and causes injury or damage to another party.
Wrongful Act in More Detail
According to the law, a wrongful act is an act committed in violation of another’s legal right, resulting in harm to the affected party. A wrongful act can include various activities, from defamation of character to medical malpractice. It can also refer to a legal term subset of the larger tort of negligence.
A wrongful act is generally not covered by an insurance policy, meaning that the policyholder is ultimately liable for any damages resulting from their wrongful act. This stipulation is typically found in general liability and professional liability policies, which are used to protect policyholders from claims of negligence or other wrongful acts.
The meaning of a wrongful act is clear: an act or omission of a policyholder that results in legal liability or financial loss to another person. It is an intentional or negligent act deemed unlawful and causing injury or damage to another. It is up to the policyholder to ensure they are protected against wrongful acts and have an appropriate level of coverage to cover any potential damages.
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