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Defense Costs

⚖️ Liability

Legal fees to defend a claim. Key question: are they inside your limits (eroding them) or outside (on top)?

🎓 Agent note “Defense within limits” (eroding/“burning” limits) is common on E&O/D&O — a long defense can gut the policy before any settlement. Flag it.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.

Liability Insurance Professional Liability (E&O) Errors & Omissions (E&O) Umbrella Insurance Excess Liability Occurrence Policy Claims-Made Policy Retroactive Date

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