The typical liability policy insures the policyholder against “damages” but does not define what that word means. In most cases, the damages that the insured pays, whether because of a judgment or because of a settlement, will consist of money paid to another entity.
Damages and DIY: Coverage for Corrective Measures Undertaken By the Insured
In some circumstances, there is a strong argument that internal costs the insured incurs to remediate the harm it has caused a claimant can constitute covered damages that the insurer must reimburse.
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