Coverage Terms
Consent to Settle
A policy provision requiring the insurance company to obtain the insured's approval before settling a malpractice claim. This protects the attorney's professional reputation by preventing the insurer from settling claims the attorney believes are without merit. Many policies include a hammer clause that modifies this protection.
Related terms
Hammer ClauseA policy provision that limits the insurer's financial exposure when the insured refuses to accept a...Duty to DefendThe insurer's obligation to provide and fund a legal defense when a covered claim is made against th...Duty to IndemnifyThe insurer's obligation to pay settlements, judgments, and other covered losses on behalf of the in...