Insurer Says Virginia Law Blocks Payment of $10M Punitive Damages for ‘Intentional' Acts

Twin City Fire Insurance Co. filed suit in Virginia federal court seeking a declaration that it does not owe coverage for $10 million in punitive damages awarded to Rehab Mohamed. A Colorado jury had awarded Mohamed $1.5 million in compensatory damages and $10 million in punitive damages after finding that SHRM intentionally discriminated and retaliated against her. The insurer says Virginia law bars coverage for punitive damages tied to intentional acts.