If a named insured causes bodily harm to another named insured, what action may the insurer take?

The situation described involves a named insured causing bodily harm to another named insured, which raises important considerations regarding liability insurance coverage. In many liability insurance policies, there is typically an exclusion that prevents coverage for individuals who are named insureds and who cause injury to other named insureds. This is because an insurance provider generally does not want to cover claims between parties who share the same policy, which can create a conflict of interest and complicate the claims process.

By excluding coverage for the injuring party, the insurer helps to maintain the integrity of the policy and avoid moral hazard, where one insured may harm another knowing that their insurance will cover the damage. Consequently, if a named insured injures another named insured, the insurer has grounds to invoke this exclusion and deny coverage for the claim related to the injury caused.

This logic underpins the decision-making by the insurer in these circumstances, as it aligns with standard insurance practices seen in many insurance policies. Thus, the action the insurer may take is to exclude coverage for the injuring party.