When can corporations get away with not reimbursing their carriers for liability deductibles after settlements are made? Not too often, according to courts that have addressed the question.
A review of case law indicates that corporate insureds may refuse to reimburse their carriers for liability deductible payments even though their policies clearly include such deductibles. When that happens, the courts may be asked to referee.
First-party property deductibles work in a pretty clear-cut fashion, with the insurer subtracting the amount of the deductible from the settlement check. There's no need for the business/insured to reimburse the insurance company.
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