Beware The Hammer Clause
Are You Fully Covered?
Take a look at your current professional liability insurance policy. Lurking deep within your consent to settle provision could be a "hammer clause."
Some insurance policies include a clause that if an insured withholds consent to settle, the insured will have to pay out of their own pocket any judgment in excess of the proposed settlement amount.*
That practice may not be in the best interest of conscientious psychiatrists concerned with defending their reputation and practice, and that is why there is no "hammer clause" in The Psychiatrists' Program's policy.**
For more information about how a "hammer clause" could affect you and your practice, either call (800) 245-3333, ext. 389 or e-mail us. Also see our section on Consent to Settle.
* That is, if an insured refused to consent to a settlement and then was found guilty of negligence, the insurer can refuse to pay the amount of the award which is over and above the previous settlement figure discussed.
** please see policy for details.
Anatomy of a Lawsuit
What kinds of claims are we experiencing? What is the first thing you should do if a claim arises? How do we select defense attorneys to represent insureds? Learn these answers and more in Anatomy of a Lawsuit.