Which insurance is typically excluded in certain jurisdictions for damages related to gross negligence?

The correct answer centers on the fact that exemplary or punitive damages are often excluded from coverage under various types of liability insurance, especially in regard to gross negligence. This exclusion is based on the nature of punitive damages, which are intended to punish a wrongdoer and deter similar conduct in the future, rather than to compensate the injured party for losses incurred. As a result, many insurance policies explicitly state that they will not cover such damages to prevent the insurance company from being liable for punitive measures that surpass standard compensatory damages.

Regarding the other options, general liability insurance typically covers a broad range of accidents, including those resulting from negligence, unless specifically excluded in the policy’s terms. Errors and omissions insurance, designed for professionals to protect against claims of inadequate work or negligent actions, also generally provides coverage unless there is a clear exclusion for gross negligence. Property insurance protects against loss of physical assets and is not typically concerned with negligence claims, thus not relevant in this context of gross negligence and its repercussions.