What does the term 'intentional acts' refer to in the context of insurance policies?

In the context of insurance policies, the term 'intentional acts' specifically refers to deliberate actions that are taken with the intention of causing a loss or damage. This means that the individual performing these acts is aware of the potential consequences and chooses to undertake the action regardless. Because these actions are intentional, most insurance policies explicitly exclude coverage for any damage or loss that results from such acts.

Understanding this definition is crucial for both policyholders and insurers, as it establishes the boundaries of what is covered under an insurance policy. Deliberate actions are fundamentally different from negligence or accidents, which are generally covered. Negligence might arise from a failure to act with reasonable care, leading to unintentional outcomes, while accidental events occur without forethought or intent to cause harm. Therefore, recognizing that 'intentional acts' involve a conscious decision to cause damage clarifies why they are not insurable under standard insurance agreements.