Most liability and malpractice insurance policies DO NOT ALLOW the client to fight a claim if they feel they are not at fault. Instead most insurance companies have what is called a “Hammer Clause”. The “Hammer Clause” allows the client to force the insurance defense to move on with the one stipulation. If the claim ultimately pays more than what the insurance company had asked you to settle for the difference is paid by the client. For example, a claim settlement is offered at $100,000 to the Physical Therapists and their insurance company. The PT did nothing wrong and argues to fight the claim in court. If the insurance company has a “Hammer Clause” that PT would have to pay the difference between the ultimate award and the $100,000. This could be many tens or hundreds of thousands of dollars. The CM&F insurance policy will fight on and pay the full claim regardless if the client chooses not to settle.