Who Controls Settlement Decisions in Your LPL Policy?

Not all Lawyers’ Professional Liability policies are created equal — especially when it comes to the fine print.

One of the most important (and often overlooked) provisions in an LPL policy is the “hammer clause.” Depending on how it’s written, this clause can significantly limit your control over claim outcomes — and even restrict access to your full policy limits.

At USI Affinity, we believe attorneys should have the power to protect what matters most: their reputation, their practice and their professional integrity.

Does Your Policy Include a Hammer Clause?

Some LPL policies allow the insurer to “hammer” the insured into settlement by capping coverage if the attorney declines to settle a claim. In these situations, choosing to fight a claim could mean absorbing uncovered costs — even when you believe settlement is the wrong decision.

We help firms avoid restrictive language that can reduce control and limit coverage.

USI Affinity is one of the rare Lawyers’ Professional Liability providers that has removed the hammer clause from our policies — giving attorneys the freedom to defend themselves without sacrificing access to their full policy limits.

Why This Matters

• Greater control over settlement decisions
• Protection of your professional reputation
• Confidence that your policy responds as intended
• Coverage aligned with how attorneys actually practice

Watch the Video: Why the Hammer Clause Matters

In this short video, our team explains:

• What a hammer clause is
• How it can impact your firm during a claim
• Why its removal can make a meaningful difference in your coverage

When it comes to professional liability, the details matter.

Watch the video to learn why not all policies are created equal.