Are you certain that your NY business insurance company will provide legal defense for your organization in the event of lawsuit?
The “Duty to Defend” clause is standard practice for commercial general liability policies. However, for some Professional (E&O), Directors & Officers Insurance, and Employment Practices Insurance policies there is “Non Duty to Defend” language. This means that your NY business insurance legal defense coverage may NOT respond in certain instances.
Does your business insurance 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 Ny business insurance policies then “Non Duty to Defend.”
However, it is my purpose in producing content for this blog that YOU a more informed NY insurance consumer.
Make Sure You Have Duty to Defend Clause
If you look at the policy forms for you NY business insurance policy it should be clear whether your policy contains the “Duty to Defend” clause or not.
However, if there is any doubt in your mind as whether or not your business insurance policy is “Duty to Defend” or not please call us at (518) 456-6688 and one of our NY business insurance specialists with help you make sure your business is properly protected.
You can also click here to contact via email.
Thank you and Good luck!