What is a 70/30 hammer clause?
For example, if the Hammer Clause stipulates 70/30, then the insurer would be responsible for paying 70% of defence costs while the insured would pay 30%. Again – this is only the case if the insured chooses to continue defending, despite the insurer recommending that they settle.
What is a 50% hammer clause?
Similar to the above hammer clause, 50/50 is an indication that the insured and insurer will share the costs after the initial settlement offer 50% each. Although not as common as the 80/20 provision, the 50/50 hammer clause is a standard split.
What is a soft hammer clause?
A soft hammer clause will ensure the carrier, not the insured, is responsible for some or most of the litigation costs, even after the insured refuses the settlement recommendation. This gives the insured more control over the direction and handling of their claim.
What is a hammer clause in Epli insurance?
Also known as a cooperation clause. A provision commonly found in employment practices liability insurance (EPLI) policies that penalizes the insured employer for refusing to consent to a financially reasonable settlement offer that the insurer was willing to accept.
What is a no settlement clause?
No Party may settle or compromise any Third Party Claim for which it is seeking to be indemnified hereunder without the prior written consent of the Party from which such indemnification is sought, which consent may not be unreasonably delayed or withheld.
What is a claims-made insurance policy?
A claims-made policy refers to an insurance policy that provides coverage when a claim is made against it, regardless of when the claim event occurred. A claims-made policy is a popular option for when there is a delay between when events occur and when claimants file claims.
Is a hammer clause good or bad?
When your insurance policy has a hammer clause, you give the insurance company a bit more control over the outcome of claims against you. Without a hammer clause, your insurance company must respect your decision to keep fighting.
What is the fellow employee exclusion?
Fellow Employee Exclusion — an exclusion in liability policies that eliminates insured status for an employee of the named insured organization with respect to injury that employee causes to another employee.
What makes lawyers professional liability coverage different from other liability coverages?
The main difference between general liability and professional liability is in the types of risks they each cover. General liability covers physical risks, such as bodily injuries and property damage. Professional liability covers more abstract risks, such as errors and omissions in the services your business provides.
What is a claims made trigger?
Claims-Made Coverage Trigger — a type of coverage trigger that obligates an insurer to defend and/or pay a claim on an insured’s behalf, if the claim is first made against the insured during the period in which the policy is in force.