Va. Code » Title 38.2. Insurance » Chapter 2. Provisions of a General Nature
Virginia Code

Va. Code Ann. § 38.2-227 (2026)

Public policy regarding punitive damages

✓ laws through the 2026 session (checked Sept. 2026)
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It is not against the public policy of the Commonwealth for any person to purchase insurance providing coverage for punitive damages arising out of the death or injury of any person as the result of negligence, including willful and wanton negligence, but excluding intentional acts. This section declares existing policy.

1983, c. 353, § 38.1-42.2; 1986, c. 562.

Notes of Decisions
Cited in 8 cases (2 in the last 5 years), 1988–2025 · leading case: Fairfield Ins. Co. v. Stephens Martin Paving, LP, 246 S.W.3d 653 (Tex. 2008).
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Fairfield Ins. Co. v. Stephens Martin Paving, LP, 246 S.W.3d 653 (Tex. 2008). · cites it 2× “095 (2007) ("An insurer may insure against legal liability for exemplary damages or punitive damages that do not arise from a wrongful act of the insured committed with the intent to cause injury to another.”
Allstate Ins. v. Wade, 579 S.E.2d 180 (Va. 2003). · cites it 4× “3 Since this Court’s decision in Lipscombe , the General Assembly has enacted Code § 38.2-227 which specifically states that “[i]t is not against the public policy of the Commonwealth for any person to purchase insurance providing coverage for punitive damages” awarded in…”
United Servs. Auto. Ass'n v. Webb, 369 S.E.2d 196 (Va. 1988). · cites it 2× “2 (now Code § 38.2-227). At the time of this accident, Code § 38.”
Fluke Corp. v. Hartford Accident & Indem. Co., 7 P.3d 825 (Wash. Ct. App. 2000). “1962) (in considering whether punitive damages were insurable under Virginia *248 law, the court looked to the punishment and deterrence policies behind punitive damages), superseded by statute, Va. Code Ann. § 38.2-227 . But Washington does not have a policy of imposing…”
United States Fire Ins. v. Aspen Bldg. Corp., 367 S.E.2d 478 (Va. 1988). · cites it 2× “2 (now, Code § 38.2-227). The statute, however, did not extend to awards of punitive damages in property damage cases.”
Fluke Corp. v. Hartford Acc. & Indem. Co., 7 P.3d 825 (Wash. Ct. App. 2000). “1962) (in considering whether punitive damages were insurable under Virginia law, the court looked to the punishment and deterrence policies behind punitive damages), superseded by statute, Va.Code Ann. § 38.2-227. But Washington does not have a policy of imposing punitive…”
Peerless Indem. Ins. Co. v. Tilma, Inc., No. 2:24-cv-00492 (E.D. Va. July 22, 2025). · cites it 3× “” Va. Code § 38.2-227. Given that the underlying lawsuit alleges negligence by Tilma due to failing to meet a duty of reasonable prudence, see ECF No.”
State Farm Fire & Cas. Co. v. Shifflett, 674 F. Supp. 3d 316 (W.D. Va. 2023). · cites it 2× “Code § 38.2-227; see also United Servs. Auto.”
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