Definition Of Defense Of Suit Against Insured In Insurance

Definition of "Defense of suit against insured"

Sharleen Sundin & Lisa Cox, Real Estate Agent Groome & Co Realtors

Clause in a liability insurance policy under which an insurance company agrees to defend an insured even if a lawsuit is without foundation. The costs of defending the insured are covered, in addition to the limits of coverage under the policy. For example, if the limits of coverage under a policy is $1,000,000 and defense costs are $120,000, the $120,000 costs are in addition to the $1,000,000 of coverage. This is critical, since defense costs can be quite high.