Consent to Settle Clause
Definition. A Consent to Settle clause requires the insurer to obtain the insured's approval before settling a claim. Protects professional reputation when insurer might want to settle a meritless claim quickly.
Also known as: Consent Clause
Standard in Medical Malpractice, Legal Malpractice, and most Architects/Engineers E&O policies. Pure Consent is full veto power; Modified Consent often includes Hammer Clause backup if you refuse a reasonable settle. Critical for professionals where reputation > insurance economics.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
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