Does General Liability Cover Settlements?

Sometimes, if the settlement resolves a covered claim and the insurer approves it under the policy terms.

A contract or employment dispute is not covered simply because your business agrees to settle it.

Contact the insurer before agreeing to a settlement. Check consent rules, covered damages, deductibles, retentions, and remaining limits; unauthorized agreements may affect coverage.

Updated . Check your quote and policy wording to see how this answer applies to your coverage. See the editorial policy or contact Spot with a correction and supporting source.

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