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The Hammer Clause. Called by some insurance companies âThe Cooperation Clause,â the hammer clause in a professional liability policy is something you should be aware of. The hammer clause is a provision included in many policies that gives the insurance company more control in a claim than you may be comfortable with. It is best described by example:
From Actuary to Lienholder, Monoline policy of War Clause, insurance is chock full of unique and sometimes mystifying terms. Letâs clear up that confusion with some straightforward definitions and explanations of insuranceâs most puzzling phrases: