Get IL-02-03

Defense in addition to limits of liability – Some insurance companies apply defense costs against the limit of liability. If a trial is involved, defense costs could significantly erode or potentially exhaust your limit.

"Defense within limits" (DWL) provisions provide that any legal defense costs incurred by the insurer in defending the insured against a liability claim under the policy will be set off against the policy's coverage limits.

Additional insured status is an endorsement placed on a pre-existing liability insurance policy, such as commercial general liability (CGL). It extends the reach of the endorsed policy to otherwise uncovered parties who may benefit.

Defense inside the limit means that all defense costs (attorney's fees, court costs, investigation and filing legal papers) are deducted first from the policy limit, which cuts into the overall limit of dollars available to pay for monetary damages awarded by a ruling.

ing to IRMI, defense costs within the limits of liability means that in the event your insurance company has to defend you or your company from a claim, all legal, investigative, defense and appeal expenses incurred will erode your limits of liability.

It is important to keep in mind that the failure to supply exclusion's primary purpose is to preclude coverage when the allegation involves the failure to supply an adequate quantity of the product in question; the exclusion has nothing to do with the quality of the product.

Inside the limit means that all defence costs are deducted first from the policy limit, which cuts into the overall limit available to pay for monetary damages. Outside the limit means there are separate limits or unlimited funds available for defence costs.

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsement protects the additional insured under the named insurer's policy allowing them to file a claim if sued.