Hammer Clause
A policy clause about what happens if the insurer wants to settle a claim and you do not. It can shift part of the extra cost to your firm.
What it means for your firm
Versions vary: some shift all the extra cost to the firm, others split it, for example 50/50 or 80/20, and some policies have no hammer at all.
Articles that explain it
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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