What is a 'Hammer Clause'?

What is a 'Hammer Clause'?

For executives and board members, and also for most professionals, your actions have big effects on others. Consequently, they need special insurance, such as a Professional Liability policy or a Directors & Officers policy. In these policies, there is almost always a 'Consent to Settle' clause, often referred to as a 'Hammer Clause', that puts restrictions and conditions on settling claims. 

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