Consent to settlement clause

{
  "id": "MLC-T-INS-000903",
  "term": "Consent to settlement clause",
  "field": "Insurance and risk management",
  "definition": "A provision in some liability insurance policies, particularly professional liability or directors and officers (D&O) insurance, that requires the insured's approval before the insurer can settle a claim. This clause gives the insured control over settlement decisions, especially when a settlement might impact their professional reputation. If the insured withholds consent, they may be responsible for any additional defense costs or judgment exceeding the proposed settlement.",
  "url": "https://mlchart.com/terminology/insurance/consent-to-settlement-clause/"
}