Legal Definitions - expected/intended exclusion

An expected/intended exclusion is a standard provision found in many insurance policies. It states that the policy will not provide coverage for damages or losses that the policyholder either expected to occur or deliberately intended to cause. Insurance is fundamentally designed to protect against unforeseen, accidental, or fortuitous events, not against the consequences of intentional actions or outcomes that were clearly anticipated by the policyholder.

Here are some examples illustrating this concept:

• Example 1: Intentional Harm

  Imagine a situation where a person, Sarah, gets into a heated argument with a neighbor and intentionally pushes them, causing the neighbor to fall and break their arm. The neighbor sues Sarah for medical expenses and pain and suffering. Sarah's homeowner's insurance policy, which typically includes personal liability coverage, would almost certainly invoke an expected/intended exclusion. This is because Sarah deliberately intended to push her neighbor, and the resulting injury was a direct and expected consequence of that intentional act. The insurance policy is not designed to cover damages arising from intentional wrongdoing.

• Example 2: Deliberate Property Damage

  Consider a landlord, Mr. Henderson, who is frustrated with a tenant and decides to intentionally tamper with the electrical wiring in the tenant's apartment to make it uninhabitable. This act causes a small fire, damaging the tenant's belongings and forcing them to move out. The tenant sues Mr. Henderson for property damage and relocation costs. Mr. Henderson's landlord insurance policy would likely apply an expected/intended exclusion. Since he deliberately caused the damage to the electrical system with the intent to disrupt the tenant's living situation, the resulting fire and associated losses are not covered. Insurance policies are meant for accidental damage, not damage intentionally inflicted by the policyholder.

• Example 3: Foreseeable Business Liability

  A construction company, despite receiving multiple warnings from its engineers about the instability of a specific type of foundation material in certain soil conditions, decides to use that material anyway to cut costs on a new building project. Months later, the building develops severe structural cracks due to foundation failure, leading to costly repairs and lawsuits from the property owner. When the construction company files a claim under its professional liability insurance, the insurer would likely apply an expected/intended exclusion. Because the company knowingly disregarded expert warnings and proceeded with a method known to be risky, the subsequent structural failure and associated liabilities could be considered "expected" consequences of their deliberate decision. The policy is not intended to cover losses that arise from a conscious choice to take a known, high risk that predictably leads to damage or liability.