Bill Cosby was ordered to stand trial in a sexual assault case Tuesday, the first instance of criminal prosecution in the ongoing saga of the comedian’s alleged decades-long pattern of sexual misconduct. However, unlike several of the civil suits pending against Cosby, his insurer won’t have to foot the bill for this one.
In addition to the criminal charges, Cosby is currently embroiled in at least seven lawsuits – filed by 13 accusers in three states – charging defamation, sexual assault or sexual battery. In at least three of the defamation suits, Cosby’s insurer,
AIG, is paying for his defense.
AIG is on the hook because Cosby’s homeowner’s policies feature “personal injury” coverage that includes protection against accusations of defamation. So far, AIG has paid at least $2 million defending the lawsuits, according to a
Washington Post report.
But that insurance won’t cover the costs of a criminal trial, according to the
New York Times. While attorneys have occasionally been successful in arguments that insurance should cover criminal defense, it’s rare. According to a
Claims Journal article, three conditions generally must be met before an insurance company has a duty to defend: the policy must contain a contractual agreement to defend, a “suit” must be filed against the policyholder, and the policyholder must tender the defense of the suit to the insurance company.
The term “suit” is usually defined as a civil action, according to the
Claims Journal – meaning criminal cases don’t qualify for the same protection.
And AIG doesn’t even want to defend the civil suits against the comedian. The company has argued that a sexual misconduct exclusion in Cosby’s policies should excuse them from defending the suits. However, a judge ruled in November that since Cosby was being sued for defamation, the exclusion didn’t apply. AIG has said it plans to appeal the ruling.
