Especially Treacherous Liabilities
Liabilities generally not cancelable in bankruptcy include the following:
- Government student loans
- Trust fund tax liability
- Hazardous waste liability
- Breach of fiduciary duty liabilities
- Child support and alimony
- Medicare, Medicaid, and sometimes private pay refund liabilities of physicians: Carriers have been suing doctors for not following referral laws for significant refunds
Liabilities generally not covered by insurance include the following:
- Civil rights violations committed by employees or others
- Environmental liabilities, including sick building syndrome and lead paint issues
- Criminal acts
- Charitable and religious board activities
- Jet skis normally cannot be insured for over $250,000 per occurrence
- Acts of terrorism: Most casualty insurance clauses exempt acts of terrorism. The industry has been paying claims on goodwill up until now