Advancement of defense costs provision

{
  "id": "MLC-T-INS-000344",
  "term": "Advancement of defense costs provision",
  "field": "Insurance and risk management",
  "definition": "A policy clause requiring an insurer to pay for legal defense expenses as they are incurred, rather than reimbursing the policyholder after the claim is resolved. This provision is found in many directors and officers (D&O) and errors and omissions (E&O) liability policies. Policies without this provision may only indemnify the insured for defense costs at the conclusion of the litigation.",
  "url": "https://mlchart.com/terminology/insurance/advancement-of-defense-costs-provision/"
}