The duty to defend is triggered when the insured is sued and in turn "tenders" defense of the claim to its liability insurer.
A forwarder who takes this action should inform their liability insurer and insure your goods against their potential liability.
Costing teem and their liability insurers dear.
This obligation should be linked to professional licensing requirements and to the demands of liability insurers for malpractice coverage.
Now, a wave of shareholder lawsuits is prompting liability insurers to impose larger co-payments on corporate clients, too.
With flex-rating, commercial liability insurers may raise or lower rates only within defined bands.
Coit's liability insurer refused to defend on the grounds that its policy did not cover intentional acts.
The first situation is where an insured abandoned in bad faith by its liability insurer makes a special settlement agreement with the plaintiff.
But the increased cost to liability insurers would be neatly offset by total fewer claims against their own clients.
The remainder will be paid by liability insurers of the company's former directors.