Insurance policies covering professional liability risks commonly afford coverage with eroding limits - such that the insurer’s payment of legal fees and expenses reduces the policy limits available to pay a settlement or judgment - and require an insured’s consent to settle. These policies differ significantly from traditional, occurrence-based liability policies where fees and expenses incurred by the insurer in defense of the insured are outside of the limits of liability and claims can be settled by the insurer without the insured’s consent.
Learn more in the September 2022 article, “The Verses of a Professional Liability Policy” published in DRI’s The Brief Case: DRI Committee News by attorneys Meghan Lewis, Jared Cluck and Katrina Smeltzer.
