Insurance
May 10, 2013
State courts split on whether insurers obligated to pay attorney fees
There is a clear split of state appellate court authority, but only one decision is the correct decision. By Neil Selman
The standard business liability policy says that the insurer will pay those sums that the insured becomes legally obligated to pay as "damages" which reduce the amount available on the policy limits.
However, the supplementary payments provisions (SPP) state that the insurer will pay, as to any suit it defends, certain specified costs and expenses in addition to the limits of the policy, including "costs taxed against the i...
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