Inside SSA

Exclusion of insurance coverage in cases of racism

janeiro 28, 2026

Recently, the São Paulo Court of Justice (TJSP) unanimously confirmed the legitimacy of insurers’ refusal to provide coverage in a case concerning the costs of the insured’s defense in a Public Civil Action based on accusations of racism.

The Court acknowledged that the insurance policies expressly stipulated the exclusion of coverage for claims arising from racism, insult, slander, defamation, and harassment. This provision was deemed valid and consistent with the social function of the insurance contract.

In its ruling, the prevailing understanding was that insurance, structured on the principle of mutualism, fulfills an important social role by distributing lawful risks among policyholders, and under no circumstances can it serve as an instrument to support or mitigate crimes.

In this context, the exclusion of coverage was considered legitimate both from a contractual perspective and in light of constitutional public order, which treats racism as an imprescriptible crime incompatible with any form of insurance protection.

The 28th Chamber of Private Law of the TJSP expressly recognized that there is no legitimate insurance coverage for accusations of racism, even when the amounts claimed are limited to defense expenses in the Public Civil Action.

The decision reaffirms important limits on insurance activity, preserving the integrity of the insurance system and its commitment to fundamental societal values. In this case, SSA represented one of the insurers involved.

Check out our publication on the topic on LinkedIn by clicking here.