Glossary
Defense costs
Attorney fees, expert costs, and litigation expenses the policy pays. On most E&O forms, defense spending erodes the limit (“defense inside limits”);…
What is defense costs?
Attorney fees, expert costs, and litigation expenses the policy pays. On most E&O forms, defense spending erodes the limit (“defense inside limits”); some professions can buy defense outside limits.
Why it matters
Defense is the quiet majority of professional liability value: attorneys, experts, and court costs mount long before any settlement. Policies that pay defense outside the limit preserve your full coverage for judgments; defense-inside policies erode it. Ask which one you are buying.