First Dollar Defence Coverage Explained

First Dollar Defence Coverage Explained

First dollar defence coverage is a feature included in some liability policies in which retentions do not apply to defence costs, even if no indemnity payments are made in conjunction with a claim. Thus, under a first dollar defence coverage policy if an insurer were to expend $10,000 on the defence of a claim and nothing for indemnity, the insured would not be required to pay any out-of-pocket costs for defence. Where first dollar defence coverage is available/offered it should strongly be considered as it can help significantly reduce the cost of a claim and minimize the financial impact of any liability suit brought against your organization.

First dollar coverage is most commonly found in Commercial General Liability Insurance (CGL) and Directors and Officers Insurance (D&O)First dollar defence coverage but can be negotiated into other types of liability coverages that ALIGNED Insurance can secure on your behalf as well.

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