General Liability Insurance: How Defense Costs Work in General Liability Claims

Defense costs refer to the legal expenses incurred when defending your business against a covered liability claim. This can include attorney fees, court costs, expert witness fees and other related legal expenses. In most general liability policies, these costs are covered in addition to the policy’s liability limits, but it’s important to review your policy details to understand exactly how coverage applies.

How Are Defense Costs Allocated?

In Georgia, general liability insurance policies typically provide coverage for defense costs from the moment a claim is filed, even if the claim is groundless or fraudulent. Here’s how it generally works:

• The insurance company selects and pays for legal counsel to defend your business.
• Defense costs are generally paid as they are incurred, rather than reimbursed after the fact.
• Some policies may include defense costs within the policy limits, so it’s crucial to check your specific coverage.

Your broker can help review your policy and answer any questions related to your coverage.

Learn More

The team at Russell Harding Insurance is here to help Georgia businesses understand their general liability insurance and ensure they have the right protection in place. If you have questions about defense costs or want to review your coverage, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.