Search
 
Commentary

Defense Cost Reimbursement: A Surprise for the Insured?

The insurer's duty to defend the insured is an accepted part of the CGL coverage form's insuring agreementbut the insured may be surprised to find that the insurer can get reimbursement for some of the legal costs expended.

By David D. Thamann | Updated on October 25, 2011

The duty of the insurer to defend the insured under the terms of the commercial general-liability coverage form is an accepted part of the form’s insuring agreement.

Insurers have generally had no problem with the judicial interpretation that this duty to defend is separate from and broader than the duty to indemnify. And, insureds take it for granted that once the insurer assumes the defense of the insured, the insurance company will pay the legal expenses involved in defending the insured.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.