California Does Not Bar Defense Coverage For "Willful Acts"

Darren Teshima and Harry Moren co-authored an article for Law360 examining the ways in which defense coverage may be available for alleged intentional misconduct. According to Darren and Harry:

"California prohibits insurers from indemnifying policyholders for their intentional misconduct, as a matter of public policy and as codified in California Insurance Code section 533. This bar on insurance coverage, however, does not necessarily bar insurers from providing or paying for a defense against accusations of wrongful conduct. When California policyholders tender a complaint alleging intentional wrongdoing — such as a qui tam lawsuit alleging False Claims Act (FCA) violations — they should not simply accept an insurer’s broad coverage denial relying upon Section 533."