As a matter of public policy, Pennsylvania (like a number of other states) prohibits insuring against punitive damages.
I was recently told a story about a condominium association that is carrying property insurance coverage on their condominium units which includes a $50,000 per unit deductible on water related losses!
In State Auto Property & Casualty Insurance Co. v. Hargis, 2015 U.S. App. LEXIS 7475 (6th Cir., May 6, 2015) the United States Court of Appeals for the Sixth Circuit, interpreting Kentucky law, refused to recognize an insurer’s reverse bad faith claim against a policyholder that intentionally set fire to the insured property in order to collect insurance proceeds.
If correctly understood and applied, the Supreme Court’s decision in Omnicare, Inc. v. Laborers Dist. Council Const. Industry Pension Fund, 135 S. Ct. 1318 (2015), will allow corporate officers to speak more freely, without fear of unfair liability.
The International Risk Management Institute (IRMI) web site provides an wealth of information for those who work in the insurance industry.