First Dollar Defense
A deductible that applies only to settlements or judgments, not to legal defense costs. The insurer pays defense from the first dollar.
What it means for your firm
Without it, a firm can win a case, pay nothing in damages and still owe its full deductible in legal fees.
Some carriers include it in the base policy, others offer it as an endorsement, and some do not offer it at all.
Articles that explain it
First-Dollar Defense vs. Deductible Including Defense Costs: What Engineers Need to Know How to Compare Two Architects & Engineers Professional Liability Quotes What Is an Extended Reporting Period (Tail) on an A&E Professional Liability Policy? What Is a Hammer Clause in Professional Liability Insurance?
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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