Will Your Insurance Carrier Defend You?
Are you certain that your insurance company will provide legal defense for your organization in the event of lawsuit?
Who Will Defend You?
The “Duty to Defend” clause is standard practice for General Liability policies. However, for some Professional (E&O), Director’s & Officer’s , and Employment Practices policies there is “Non Duty to Defend” language.
Does your policy contain “Duty to Defend” language? Would you bet your Business on it?
According to the Insurance Journal ”Duty to Defend” language essentially states that in the event a claim is made against the named insured for an alleged wrongful act, the insurance company providing coverage at the time has the right and duty to defend the claim, even if it is groundless, false or fraudulent.
With “Duty to Defend” no matter if the claim is frivolous or not the Insurance Carrier is obligated to defend the insured. This is very good stuff…
In contrast “Non Duty to Defend” (also known as Indemnity or Reimbursement language states that it is the insured’s responsibility to manage the defense of a claim, not the Insurance Carrier. This includes the insured, not the Insurance Carrier, paying first dollar defense costs.
Please understand that “Duty to Defend” language is by far more commonly found in these types of specialty casualty policies then “Non Duty to Defend.”
However, it is my purpose in producing content for the Albany Insurance Professional blog to make YOU a more informed insurance consumer. Ask your insurance professional what type of defense provision your policy has. This is a simple question that should be easy for your insurance professional to answer.
“If you’d like to talk about your Insurance Risk, contact me today. We can talk about your exposure, and begin our relationship!”
Thank you,
Ryan H.
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