Cosby Defrays Legal Costs in Defamation Suits with Home Insurance

New York Times reported that Cosby has surprisingly found a unique resource to cover his mountainous expenses, as he battles the claims of women saying they were sexually assaulted by Cosby.  

The 10 women initially filed cases against Cosby for sexual assaults that happened decades ago. According to Archy Newsy, these women can no longer sue Cosby for sexual assault because the statutes restrictions stated that the time of Cosby's offense has already lapsed far too long. Therefore, these women had filed for defamation, accusing Cosby and his company for ignoring their allegations, calling them liars, and fabricating stories.  

One of Cosby's alleged victims was former actress, Janice Dickinson, who stated in New York Times that, "sexual misconduct may be the subject matter of defendant's statements, but defendant's statements, not his alleged sexual misconduct, directly caused the injury for which Dickinson now seeks relief."

Cosby's insurance, the American International Group, Inc., more commonly known by their acronym, AIG, protested against the actor's request for coverage. In Tampa Bay Times' report, the insurance company said that they should not have to pay for claims that arose from alleged acts of sexual misconduct. 

Based on AIG's insurance policy, Homeowner's Insurance is usually ever used to protect unique residences in their problems regarding water damages, for example, severe weather, and physical security for the family in general.  

However, Judge Beverly Reid O'Connell, of Federal District Court in Los Angeles, is in favor of Cosby's resourcefulness, saying that the plaintiff is simply defending itself from further damage - a cause that is reason enough for the AIG to legally cover his claims.  

The New York Times said that the AIG is currently paying for the legal fees for three out of the five defamation cases that Cosby is involved with. Despite that, the AIG is still arguing federal courts in Massachusetts and California, and to a state court in Pennsylvania, that they should not be doing this. Moreover, pointing out on a statement in his Homeowner's Insurance policy, a "sexual misconduct exclusion," a clause that rules out claims for personal injury coming from any actual or alleged sexual misconduct. 

This is not the first time that wealthy individuals have used insurance to cover legal expenses. Famous personalities such as Bill Clinton, Roger Clemens, and O.J. Simpson have all utilized their personal injury insurance to cover for their legal fees when they were also facing trials. They have bolstered their insurance policy to keep them covered just in case they are sued, according to report by Tampa Bay Times.