Tag Archive: Hammer Clause

Aug 27

Avoiding The Dreaded “HAMMER CLAUSE”

I have recently seen contractor pollution policies and contractor professional liability policies that contain the dreaded “hammer clause,” which compels an insured to comply with an insurer’s decision to settle a case rather than fight it out in court. Some insurance carriers also call this the “cooperation clause,” as it forces insureds to settle a …

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Nov 01

Understanding the Dreaded “Hammer Clause” and its impact on Restoration Contractors and Additional Insureds

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I have recently seen contractor pollution policies and contractor professional liability policies that contain the dreaded “hammer clause”.   Some insurance carriers also call this the “cooperation clause”  as it forces insureds to make difficult choices they normally would not agree to in the event of a loss.  This is something not yet seen in the …

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