The Little Provision That Could

The Construction Zone

PUBLISHED ON: March 25, 2008

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Commercial General Liability policies generally obligate an insurance company to defend a policyholder and to pay settlements reached by or judgments entered against a policyholder. However, a policyholder who assists its insurance company in its investigation of the claim, whether by gathering documents or actively assisting its insurance company in an investigation, may be entitled to be reimbursed for the expenses that he or she incurs, even if the insurance company eventually decides that the policyholder is not entitled to coverage for the claim. That obligation to pay—and the policyholder’s right to receive payments—is found in the “supplementary payments” provision of most CGL policies.

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