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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:
Loss-Payable Clause Law & Legal Definition. Loss-payable clause refers to an insurance policy provision that authorizes the payment of proceeds to someone other than the named insured.Under loss-payable clause, payment is made to someone who has a security interest in the insured property.oss-Payable Clause Law & Legal Definition. Loss-payable clause refers to an insurance policy provision that authorizes the payment of proceeds to someone other than the named insured. Under loss-payable clause, payment is made to someone who has a security interest in the insured property.