What does Duty To Pay mean? Read on to discover the definition & meaning of the term Duty To Pay - to help you better understand the language used in insurance policies.
Duty To Pay
A term used to describe the nature of an insurer's defense obligations under directors and officers (D&O) and employment practices liability insurance (EPLI) policies. Forms containing duty to pay (or non-duty to defend) provisions require only that the insurer reimburse the insured for funds expended by the insured in defending a claim. In contrast, policies containing "duty to defend" provisions require the insurer to assume control of the claim defense process, including selecting counsel and paying legal bills.
We hope the you have a better understanding of the meaning of Duty To Pay.