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Hammer Clause

📋 Claims

The flip side of consent-to-settle: if you refuse a settlement the insurer recommends, this clause caps what they’ll pay at the rejected amount — you’re on the hook for the rest.

🎓 Agent note “Soft” hammer clauses split the excess (e.g. 50/50) instead of dumping it all on the insured. Worth checking on E&O/D&O placements.

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.

Adjuster Public Adjuster First Notice of Loss (FNOL) Proof of Loss Appraisal Clause Recoverable Depreciation Reservation of Rights Total Loss

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