In the ISO Coverage Forms CA 03 01 & CA 03 02, Part A: Liability deductible, states "the damages resulting from any one "accident"….
The liability deductible is 50K, a claim settles for 20K & there was 10K in attorney expense associated with the defense of the insured. Does the deductible apply to both indemnity and expense or just the indemnity(loss). Do we collect 20K or 30K as part of the deductible?
New Jersey Subscriber
According to ISO rule 98, the liability deductible applies only to the loss portion of the claim and not the expenses incurred by the company, which would include the defense costs. Therefore, the deductible should be applied only to the amount of the claim.