What happens to liability if an insured is injured while committing an illegal occupation or act?

When an insured is injured while engaging in an illegal occupation or act, liability is typically denied by insurance carriers. This is because insurance policies generally contain exclusions for illegal activities, meaning that if an event occurs while the insured is breaking the law, the insurer is not required to cover the damages or liabilities that arise from that situation. The principle behind this is to discourage illegal behavior and to uphold the legal and ethical standards that insurance is designed to support.

In cases of illegal acts, the rationale is that insurers should not be responsible for consequences that stem from actions that are against the law. Therefore, when an insured suffers injuries while committing a crime or engaging in other illegal activities, those claims will be denied outright as they fall outside the bounds of the coverage intended by the policy. This is grounded in the idea that insurance is meant to protect against unforeseen accidents and risks, rather than to cover the consequences of intentional wrongdoing.