Section 8.22 Control of Defense and Settlement

• Library: Insurance Practice 2015

As under most insuring agreements, the insurer has the right to control and direct the defense of any claim made against the insured. This generally includes the right to select appropriate defense counsel, direct the retention of appropriate experts, and oversee and control pre-trial discovery.

In contrast to the typical automobile liability policy, the average accountant’s policy reserves to the insured the right to prohibit settlement. Counsel, however, should...