Costs of Injunctive Relief Compliance Likewise Can Be Covered
A general liability insurer sought a declaratory judgment that according to Colorado law it did not owe a duty under its liability insurance policies to defend or indemnify its insured related to an action by the federal government and four states for alleged violations of the Telephone Consumer Protection Act (TCPA). Both the lower and appeals courts sided with the insurance carrier finding the TCPA's statutory damages were uninsurable as a matter of Colorado public policy prohibiting coverage for intentional or willful acts. The court went on to hold the policies did not obligate the insurer to pay the costs of complying with injunctive relief sought in underlying action. The carrier was not obligated to indemnify for the cost of preventing future damages, only damages arising from past injuries.