What is a hammer letter?
Asked by: Dr. Rhianna Smitham | Last update: September 13, 2022Score: 5/5 (11 votes)
A “hammer letter” is a letter written by or on behalf of the insured or excess insurer, that clearly and unequivocally (1) demands that the primary insurer settle the claim or suit within primary policy limits, and (2) warns that a failure to do so would leave the primary insurer responsible to pay any ultimate ...
Is a hammer clause good or bad?
Without a hammer clause, your insurance company must respect your decision to keep fighting. With a hammer clause, the insurer has the right to compel you to take the settlement, even if you aren't comfortable with it.
What is the hammer clause?
A hammer clause is an insurance contract condition that limits the amount an insurer has to pay in a lawsuit if an insured refuses to approve a settlement offer.
What is a soft hammer clause?
A soft hammer clause will ensure the carrier, not the insured, is responsible for some or most of the litigation costs, even after the insured refuses the settlement recommendation. This gives the insured more control over the direction and handling of their claim.
What is a hammer clause in Epli insurance?
Also known as a cooperation clause. A provision commonly found in employment practices liability insurance (EPLI) policies that penalizes the insured employer for refusing to consent to a financially reasonable settlement offer that the insurer was willing to accept.
The Hammer Letter
What claims hammer?
A hammer clause is an insurance policy clause that allows an insurer to compel the insured to settle a claim. A hammer clause is also known as a blackmail clause, settlement cap provision, or consent to settlement provision.
What does duty to defend mean in insurance?
The “duty to defend” means that, when you timely report a potentially covered claim against you: The insurer must appoint and pay for defense counsel to defend you against the claim, unless you select your own counsel.
What is a claims made trigger?
Claims-Made Coverage Trigger — a type of coverage trigger that obligates an insurer to defend and/or pay a claim on an insured's behalf, if the claim is first made against the insured during the period in which the policy is in force.
What is the fellow employee exclusion?
Fellow Employee Exclusion — an exclusion in liability policies that eliminates insured status for an employee of the named insured organization with respect to injury that employee causes to another employee.
What makes lawyers professional liability coverage different from other liability coverages?
The main difference between general liability and professional liability is in the types of risks they each cover. General liability covers physical risks, such as bodily injuries and property damage. Professional liability covers more abstract risks, such as errors and omissions in the services your business provides.
What does employees as insureds mean?
Employees as Insureds Endorsement — this commercial auto endorsement (CA 99 33) may be used to extend nonowner liability coverage to cover the individual liability of employees while they are using their own autos in the employer's business.
What does fellow employee mean?
Fellow employee includes a colleague, supervisor or even a director of the company for which the employee is working, provided that the director is also an employee.
What is action over exclusion?
• An action over exclusion bars coverage for bodily injury to an employee, leased worker, temporary worker or volunteer worker of the Insured. The contractor and building sign a Hold Harmless Agreement prior to the start of the job which transfers this risk back to the contractor's policy.
Which is better claims made or occurrence?
Claims-made coverage is portable. You can take the coverage from one insurance company to another. The advantage to an occurrence policy is its permanence. The period of time you are insured under an occurrence policy is protected forever by the policy you had that year.
What are the four elements of a trigger in insurance?
Four different theories apply to coverage triggers: injury-in-fact, manifestation, exposure, and continuous trigger.
What is the difference between claims made and claims made and reported?
Under a claims-made policy, a claim must be made during the policy period in order for there to be coverage. Under a claims-made and reported policy, both a claim must be made and that claim must also be reported during the policy period. A grace period may apply for claims made late in a policy period.
What triggers duty to defend?
Most jurisdictions agree that in the insurance context, the duty to defend is triggered if any part of the claim against the insured is arguably within the scope of protection afforded by the policy.
Does hold harmless mean defend?
Indemnification, according to the court, is “an offensive right—a sword—allowing the indemnitee to seek indemnification.” On the other hand, hold harmless is a defensive measure providing “[t]he right not be bothered by the other party itself seeking indemnification.” Under this view, hold harmless shields one party ...
What subrogation means?
Subrogation allows your insurer to recoup costs (medical payments, repairs, etc.), including your deductible, from the at-fault driver's insurance company, if the accident wasn't your fault. A successful subrogation means a refund for you and your insurer.
What is hard hammer?
Hard-hammer percussion
Hard hammer techniques are generally used to remove large flakes of stone. Early flintknappers and hobbyists replicating their methods often use cobbles of very hard stone, such as quartzite. This technique can be used by flintknappers to remove broad flakes that can be made into smaller tools.
What is a 3rd party action over claim?
Third-Party-Over Action — a type of action in which an injured employee, after collecting workers compensation benefits from the employer, sues a third party for contributing to the employee's injury.
What is a third party over action?
A third-party over action/action over happens when an injured employee, after they have collected workers' compensation benefits, sues a third-party alleging fault for their injury. The action over occurs when the third-party tenders the claim back to the employee's employer due to their contractual relationship.
What is the dual capacity doctrine?
Under workers' compensation statutes, an employee generally is barredfrom suing his employer. The dual-capacity doctrine, however, allows an employee to sue his employer if that employer occupies a capacity with duties and obligations that are independent of the employee-employer relatonship.
What do you call your coworkers?
A common synonym for coworker is colleague, but the two words can imply different things. Coworker is typically used in a neutral way simply to indicate that you work with someone.
What are work friends called?
A colleague is someone you work with or someone who's in the same profession as you, especially a peer within that profession. Colleague can be a synonym for coworker, which is someone who has the same employer as you.